Browsing all posts in Spread Trading.
A Trade in the Moo Cows
This article takes a look at both seasonal and technical viewpoints in cattle futures.
How to Trade the Crush Spread
One offshoot from the extreme volatility that came with the GFC is that many private traders are now looking beyond the simple strategies such as buying shares. This article takes a look at a risk friendly approach to trading Soybean futures.
How to Trade Eurodollar Spreads
This article provides an overview of using Eurodollar spreads as a low risk instrument to trade economic news and interest rate cycles. We’ll look at two types of spreads: bull spread and bear spreads. We’ll also look at when to place these spreads.
FAQ: Futures, Options & Tropic Thunder II
Q: Aren’t options spreads cheaper to trade than futures spreads? A: This question is based on a misunderstanding of the mechanics of futures and options trading. Options: With options, including options on futures, you pay a “premium” when you buy an option and receive the premium when you sell an option. If you pay 10 [...]
Video: ProTrade Strategies
This video looks at the spread trading strategies as applied in the ProTrade newsletter. Included examples are trades in Soybeans and Eurodollar futures. This is set at a beginner level.
Video: Recent PTD Trades
This video look at some recent trades from the ProTraderDigest newsletter. Beginner level.
Swine Flu, hog futures and the benefit of spreads
This is a short follow up to my previous article on Swine Flu (H1N1).
Seasonal data reliability
Question: How reliable is seasonal data? Is making money from it all that simple? Answer: To answer the second question first – no it’s not always simple. Anyone that tells you they have a trading method that is fool proof is either a fool or a liar. This is why you need to get good [...]
Spreads: Going Long and Going Short
Question: I understand the concept of a futures spread, but I get confused when they talk about ‘going long a spread’ or ‘going short a spread’. Given a spread has both a long position and a short position. How then can you go long or short a spread? Answer: The concept of being long or [...]
Swine Flu and how to make money the smart way
This is textbook stuff. “Sell fear, buy reality” – that’s my spin on the old saying “buy rumour, sell fact”. It’s been an interesting two weeks in the Hogs pit. The events of the last two weeks are a perfect example of how logical spread trading can be. On a trip to the CME floor [...]
Swine flu and how pigs can fly!
It seems like this swine flu is part of almost every story on the news at the moment. It is however interesting to step back and take a look at how it has affected the market – the Lean Hogs futures market traded out of Chicago. There are two ways news like this affects a [...]
