Mar 10

Reduced Margin Spreads

One of the best kept secrets in trading is that of reduced margin spreads. You can not name a trading method that provides more safety or an increase in return on margin carries a margin small margin, while the media are also consuming less time one of the trade. Have you ever wondered why is that many of the largest, most powerful traders trade spreads? I'll show you why! QUA " SPREAD IS A reduced margin? Due to a perceived lower volatility, exchanges grant reduced margins on certain types of differentials. Differentials be long consist of one or more contracts in a market and short in one or more contracts of the same market, but in different months Intramarket-spread, or long in one or more contracts in a market short and one or more contracts for a different market, and the months of the same or different-Intermarche distribution. At Investment opportunities you will find additional information. Spread distortions are some distortions on spread trade is necessary to dispel. If we take them out of the way, I can show the advantages of tremendous expansion of trade has more than any other form of commerce. It is said that spreads do not move as much as the simple future.

I agree 100% with that statement. However, the trend is most often spread futures flat, the trend much more dramatically than outright futures, and that the trend for longer periods of time that the future of pure and simple. For these reasons, you can make much more money with which spreads the overall winner.