Educational Study: HOW TO TRADE "SPREAD"

Dec 14, 2016

Educational Study: HOW TO TRADE "SPREAD"

SPREAD is a strategy in future market.
There are two spreads:
Inner Markret / Inter Market

Inner Market: Buy the GOLD FUTURE IN DEC and SELL GOLD FUTURE in Jan, or vice versa.

Inter Market: Buy the Gold and Sell Silver or Sell the gold and Buy the silver.

The beauty of this strategy is:
You are safer for risky events such as FOMC Meeting.
i.e. no matter what happens, gold and silver they will move together. and base on the location, I prefer to buy the gold and same time sell the silver for this FOMC meeting.

Dec 20, 2016

Note

This Strategy works so nice!

Now the GOLD SILVER Ratio is 72
EARN 400 pips

Dec 20, 2016

Note

Dec 20, 2016

Note

It's good to close this SPREAD trade with nice profit