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We provide you with institutional-grade analysis and trade strategies.
The same strategies are used by grain companies and traders in Chicago, London, New York and Geneva.
The effectiveness of these strategies allows you to compete with the grain companies, top traders and hedge funds.
Commodity Futures Spreads
An Introduction to the Third Dimension
Introduction
Commodity futures trading strategies generally fall into two categories: technical or fundamental analysis. Commodity futures spreads, the difference in price of consecutive contracts, offer another dimension to those strategies.
A basic understanding of futures spreads supports and complements technical and fundamental strategies.
Commodity futures contracts are categorized by underlying product: energies, grains, livestock, softs, metals, currencies, indices, and financials. Within each category, futures contracts are settled by either physical delivery or cash settlement.
The introduction to futures spreads will focus on contracts settled by physical delivery and will use the canola futures contract and the WTI crude oil contract to present a trading strategy that transcends categories.
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