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Old 10-20-2006, 06:28 PM
Slider Slider is offline
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Join Date: Dec 2005
Location: StackTheFish
Posts: 3,879
Default Why Take Spread Positions?

I'm starting to research about futures trading and I'm having trouble understanding why you would take a spread position.

If you're doing a common spread like Long Gold/Short Silver, you're only doing it because you think the gains in Gold will be bigger than the gains in silver

Or the Loss in silver will be bigger then the loss in Gold correct?


Now why if you thought both gold and silver were going to go up, wouldn't you just take long positions in both of them?

Is there a certain nuance to analyzing say why Gold would gain more than silver?

Please let me know! If you want to be my futures "coach" and let me bounce questions off you, I'll gladly review hands.

I play a lot of MTTs and 400-1000NL full ring.
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