Understanding Spreads

A brief but thorough and informative introduction to spread trading in futures. Material on this topic is scarce, and there has long been a need for an introductory primer like this for those interested in learning about spread trading. -- Softcover book version. The Adobe Acrobat Electronic Version of this book is available by clicking here. Discusses the basics of spread trading, along with many useful topics, such as: Fundamental spread relationships Why trade spreads: advantages and disadvantages Important points to remember about spread trading Types of spread trades with specific examples Seasonal tendencies What makes seasonals work? Developing a seasonal approach The authors have many years of experience in and knowledge of spreads and spread trading Table of Contents Introduction What is a Spread? Fundamental Spread Relationships Why Trade Spreads? More Reasons to Trade Spreads Important Things to Remember About Spreads Disadvantages to Trading Spreads Uses of Spreads Types of Spreads Trades Intra-Market Spreads Intra-Seasonal Spreads Inter-Seasonal Spreads Inter-Market Spreads Inter-Commodity Spreads Source-Product Spreads Seasonal Tendencies What Makes Seasonals Work? Developing a Seasonal Approach