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Calendar spreads and changing term structure
A calendar spread trades the relationship between two maturities. Its risk comes from changes in that relationship rather than the outright market alone.
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Futures Trading Guide
Understand futures contracts, read market structure and build strategies for direction, relative value and hedging. Follow ten stages from contract basics to advanced research and disciplined risk management.
Start with What a futures contract commits you to, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Spreads and Relative Value · All lessons
Spreads and Relative Value
Study relationships between maturities, commodities and financial contracts.
Advanced
Intercommodity spreads and matching economic units
Related markets do not necessarily have matching units or risk. An intercommodity spread begins with the economic relationship and a defensible ratio.
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Advanced
Crack and crush spreads from inputs to outputs
Processing spreads compare the value of outputs with the cost of inputs. They describe a gross relationship, not the processor’s final profit.
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Advanced
Equity index and interest rate relative value
Relative value across equity indices or interest rate contracts requires a measure of the exposure being matched. Equal contract counts rarely answer that question.
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