Spread Trading is also referred to as "Hedge Trading". In essence, Spread Trading involves being simultaneously long a position in a Futures contract and short a position in another similar or related Futures contract.
The "spot" market is the cash market which means the current value of where the currency pair is trading at right now. The "futures" market represents the perception of where that same currency pair will be trading at on a specific date in the future.
Throughout my journey in the markets, I have yet to find a fool proof way to guarantee profitable trading, but what I am certain of is that you owe it to yourself to fully understand the products and markets that you intend to trade before risking a singl
One of the most frustrating aspects of trading commodities is getting comfortable with how each contract is quoted, what the point value or multiplier of each contract is and most importantly how to calculate the profit, loss and risk of a trade.
The total amount of assets under management in managed futures is estimated to be in excess of $200 billion. So how do you assess the different fund strategies to work out which one is best for you?
Producing a high probability trade forecast is not easy. Just as difficult is determining the best trading strategy and vehicles to capitalize on the forecast. In this article we look at ways of achieving this.
Trading is a game, a probability game. Your job is to set up the parameters of the game so that you have a long term edge, and then execute your strategy consistently.
Finding your very own unique commodity trading edge is a worthwhile goal. Without one you are lost in the masses, struggling to push your head above the sea of expenses.
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