Spreads for the Fall

摘要

Spreads are regarded as a less risky way to trade, and perhaps the least risky are those that exhibit recurring seasonal trends. Such spreads tend to work because of relationships they have with the time of the year as well as the types of markets involved in the spread. Here we will go over a few fall spread trades and relationships, as well as why they work. But first, a refresher on spreads. In the most basic sense, a spread refers to the price difference between two or more trading instruments, whether they are two contract months of the same commodity, two different commodities or the cash and futures price of a particular commodity.