Spreads Trading for newbies

[fibonelli]

Hi

I have read through the threads in this section, looked at the Traderpedia and searched through K-Lab about spreads trading.

I have also downloaded pdfs from Joe Ross's website on Spreads Trading. I am now familiar with the terms Intramarket, Intermarket and Inter-Exchange Spread Trading.

To assist me further, I am curious to know.

1. Where to find other good sources of information on spreads trading?
2. Which financial futures, indices and equities and/or commodities are best for trading for newbies and which ones they shouldn't trade (i.e not touch with a 100 foot bargepole!)?
3. Is there a specialist charting package/website for spreads trading?
4. Does anyone use spreadbetting exchanges to spreads trade? Who? (I know I can't set up a relative chart on the CMC platform but can on the IG platform)
5. Is DMA far better? Who?
6. Is it true that there is a significant drop in margin requirements when spreads trading?

Thank you
F

 

[-oo0(GoldTrader)]

Reading

1. Where to find other good sources of information on spreads trading?

Your local library, Amazon Books (search Spread Traders Library"), Elite traders, Joe Ross, Moore Research center, Jacob Bernstein, here.

2. Which financial futures, indices and equities and/or commodities are best for trading for newbies and which ones they shouldn't trade (i.e not touch with a 100 foot bargepole!)?

Stay away from currencys. Stay away from legs in different markets. Trade Calender spreads at first then old crop new crop in the same market next. Keep a close eye on expected return on margin when comparting spreads.

3. Is there a specialist charting package/website for spreads trading?

See: Spread Charting

6. Is it true that there is a significant drop in margin requirements when spreads trading?

Just ask any broker what margins are on outrights vs. spreads. If there is no advantage, get another broker!!

Be sure to determine the “return on margin (Rom),” expected on your spreads before you place the trade.​

 

[Kallen]

I trade Eurodollar spreads, previously Euribor. Asking about strategies for trading spreads is a sure fire key to disaster. Training to trade spreads at an arcade (which makes its money from your comms) is also crazy. The only way to do it is to watch the market day in day out and understand the way one product moves in relation to another.