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TRIFORCE TRAINING Part 2
Description
The Insight Guide to Spread Betting
Spread trading
In the preceding chapter, we described hedges, then showed examples of how you can take a primary position in the cash market and reduce the risk inherent in that position by taking a contrary position in the futures market.
But let’s say that the cash market is, for any number of reasons, unattractive to you as a commodity producer, as a commodity consumer or as a financial speculator. In fact, if you’re trading financial as opposed to agricultural contracts, the futures exchanges may be the most robust market available. In either case, you might want to take both your primary and your hedge position in the futures market.
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