Front month and Flat price on calendar spread in WTI

Discussion in 'Commodity Futures' started by gerryhoho, Aug 29, 2010.

  1. Hi All, I am working in a prop firm now trading Crude oil outright and spread. My firm trade on a reasonable size in the market, but I dun quite understand how this market works since I am more like a dealer so not much was explained to me why certain trades are done. So I sincerely here to ask you guys some questions and hope I can get more understanding in this market.

    I would like to start with some simple question, how does the front month and flat price affect on spread?

    Hope you guys won't mind I am starting with these easy questions as I would like to learn properly right from the basic.