How do you create a "Futures Spread"?

Futures spread betting is a natural extension of futures trading, whereby an investor purchases one or more offsetting futures contracts. This can be accomplished by buying a variety of different futures contracts for commodities or securities that have some sort of relationship to one another. A combination of owning a futures contract for long (buy) and short (sell) - for a financial investment that is related - can create an intermarket, intramarket or inter-exchange spread. 

A "Futures Spread" is created by owning multiple related offsetting financial instruments.

Certain futures financial instruments naturally go together and can create a spread when owned by the same investing party. As futures near maturity, the buy and sell contract prices may both change, but if the spread changes at a different rate, the professional trader can turn a profit. Spreads usually trend in one direction. Expert traders are able to use their knowledge as a guide, recognizing how seasonal factors can affect spreads.

How do you profit from Futures Spread Trading?

Large companies sometimes use futures contracts to hedge a position in order to lock in a guaranteed price, for conservative trading protection in case circumstances change dramatically. Futures spreads tend to be a more conservative form of trading since many financial investments allow for a more controlled profit base. Complicated software systems can help professional traders measure price changes, velocity and acceleration of financial investments over time, permitting rapid calculation of profit. Futures spread trading permits experienced traders the opportunity to make money in volatile markets that go up or down rapidly. There are fewer futures terms to learn. Spreads are more precise than other comparable trading vehicles. It is easier for busy traders to track trends by simply by using end-of-day data for measuring spreads.

There are many futures spread trading firms to choose from. For example, igindex has been in the business for more than three decades. Choose a global leader, like cmcmarkets, for more broad trading options. There is a worldwide access to prices with city index. Experienced traders have more selections with capital spreads. More mobile options are available with finspreads. Fans of sporting events can choose sporting index. If you want more tools for trading, then check out saxo spreads.