Future spread trading

Future spread trading is by far one of the most lucrative and still the safest way for trading futures. This is sole reason why almost all professional trader use spread to enhance his profits. I think spread trading is especially beneficial to novice traders and traders with small(less than $10,000) or marginal accounts.Four important benefits can be outlined

Easy trading
For novel and experienced traders alike it is easy to detect a trend when using chart formations or indicators. Spreads have the peculiarity to make trends more radically than absolute future contracts. Spreads also trend without the interference or disturbance caused due to computers, scalpers or other market movers.

Small margin
Most spreads have lesser margin requirements allowing traders to put on increased positions. This is an advantage for traders with small accounts, as mentioned above. And it offers great leverage as well.


High return on margin
Every point in spread holds the same price as versus absolute future contracts. There is still amazing difference between the return on margin. Also, we can trade almost 6 times as much spread than future contracts.


Low time needed
A spread need not be watched all day long. No real time data is required either. Spreads can be traded most successful utilizing the data at the end of the day. Spread trading is also excellent thus if you do not/ cannot watch the computer screen all day long.

Futures spread trading has long been being traded by professional traders although it has had a low key profile up till now.