Spread Trading

Discussion in 'Commodity Futures' started by Econmajor, Apr 3, 2008.

  1. I was wondering if anyone trades the grain spreads. What are some good books to read or website to read on it? I have done some reading on it but I would like to learn more about planting seasons and more fundamentals.
  2. Hard to learn about spread trading through any sort of publication (there isn't many publications on spreads anyway). Just find out as much fundamental info as you can about the particular commodity you are interested in spreading and then look for a good level to enter the spread.

  3. JayS


    This is a great site for a lot of things but marketforum dot com has a lot of ag traders that also spread trade. Just a heads up.
  4. Thank you all for your replies.
  5. Midas


  6. Thanks, I'm interested in grains and livestock but I forgot where I heard that the oil crack spread has been trading close to flat and has even gone negative which is why we still haven't seen a huge price increase in gas. Wouldn't this be a great time to go long the spread with the summer driving months coming up and gas prices will be increasing?

    or is it short if you think gas will rise more than oil?
  7. J-Law


    Spread texts in order of beginning to more complex titles,

    Spread trading by Howard Abell
    - Good place to start. Not a be all book. Quick fast read. A place to begin.

    Futures Spread trading: The complete guide
    by Courtney Smith
    -Also good text explains alot. Good reference text

    The Complete Guide to Spread Trading
    by Keith Schap
    -A little advanced and can be complicated reading. But, a good
    reference text to have.


    As Midas has mentioned MRCI is a great subscription and invaluable for getting up to snuff on understanding spreads & assoc product knowledge. The special spread charts section (red) is a collection of
    all potential spreads in a complex and gives you a feel for all a mkt's months and their spread relationships.

    Best o Luck,

    #10     Apr 5, 2008