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Great Sites:
Index-Day-Trading
QQQQ-Market-Timing
Trading-Glossary
TradersFloor
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Options Spread.
A spread is the simultaneous purchase and sale
of the same or similar commodity, in different or the same
contract months. Spread trading is usually considered to be a
lower risk strategy than an outright long or short futures
position, and therefore margin requirements are usually less.
Not only can spreads be utilized in futures
markets, but options provide even more opportunities for
successful spread trading. With so many variables including
strike prices, trading months, and different markets
available, the permutations and combinations of option
strategies are tremendous.
Some of the advantages of spreads are:
- require smaller margin deposits;
- seasonal patterns exist among spread
relationships.
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| RISK STATEMENT:
The trading of stocks, futures, commodities, index futures or any other
securities has potential rewards, and it also has potential risks
involved. Trading may not be suitable for all users of this Website.
Analyst research available through this Website does not constitute a
recommendation or a solicitation any particular investor should purchase
or sell any particular securities. Past performance is not necessarily
an indication of future performance. You absolutely must make your own
decisions before acting on any information obtained from this Website.
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