Introduction to spread investing Part 1 by Frank Taucher
Most commodity traders are aware of the lower risk and margin requirements that traditional spread
trading offers vs. outright long or short positions. Many even have a favorite spread or two that they
enjoy trading each year.
But are you aware of the fact that many spread traders actually earn higher returns while sleeping sounder
than outright speculators?
Spread investing allows one to identify attractive spread trades that can be used to construct a diversified
portfolio of profitable and reliable spread trades. It is this diversification that allows steady profit growth,
the steady growth that provides for nocturnal bliss.