Trading the Wheat/Corn Spread by Scott W. Barrie
ARTICLE SYNOPSIS ...Trading The Wheat/Corn Spread: by Scott W. Barrie
Here's a seasonally and statistically based intermarket spread trade.
Within a short time, every futures trader learns strategies that go beyond the simple long or short position. In riding the learning curve, the novice trader will, sooner or later, add spread trading to his or her arsenal of strategies.
Here's how one particular strategy works, as well as a his-torical review of it.
But first, here are some basic definitions. A spread is
simply the price relationship between two or more futures
contracts. Futures traders use three basic sp...