V.14:7 (311-316) Trading Index Spreads by Richard Halford
ARTICLE SYNOPSIS ...There are a number of different stock index futures, such as the Value Line index and the S&P 500, with similar characteristics which can be traded as spreads. Here are some basic methods.
Trading futures spreads is a strategy used by professional traders to either hedge a position or to take advantage of divergence
between certain markets. When accompanied by proper timing and a keen awareness of critical market dynamics, spreads can be all
the more effective in achieving specific investment objectives.
Before we get into some of those strategies, however, we must take a look at a futures sp...