Spread trading is the simultaneous buying and selling of the same number of contracts in a certain commodity. The spread is the measurement of the price difference between the two different contracts. In other words a spread is buying one futures contract and selling one futures contract simultaneously to profit from the change in differential of the two contracts. The most common form of spread in commodities is the……. calendar spread in which you buy one month and simultaneously sell another. In the most common form of spread trading – Intra- commodity spreads- the commodity is the same product and they are deliverable at different times.

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