FAQs

29 January 2023

Spread trading: contango or backwardation?

Concerning contango and backwardation, I have seen that several people have doubts. When a spread is above zero, is it in contango or backwardation? It depends. It depends on how that spread is constructed… Read the rest

29 January 2023

Spread trading: relationship between spread and underlying

Answering this question gives me the opportunity to make some clarifications in addition to emphasising the importance of the underlying in spread trading. Generally, a spread is constructed with the nearest… Read the rest

29 January 2023

Spread trading: the construction of a spread

A clarification about the construction of a spread. You should not confuse the way a spread is constructed with what you do with that spread. The ZCK23-ZCN23 spread is constructed by buying the corn futures… Read the rest