Futures Spread

(redirected from Futures Spreads)

Futures Spread

In arbitrage, the purchase of a future contract and the simultaneous sale of another contract on the same commodity when the price differs. For example, an arbitrageur may take advantage of a situation in which the purchase price and the sale price of a futures contract are different. In practice, a futures spread is relatively rare, as futures contracts are a liquid market, which holds down any price discrepancy.
References in periodicals archive ?
The book is arranged into seven parts namely, preliminaries, chart analysis and technical indicators, applying chart analysis to trading, trading systems and performance measurement, fundamental analysis, futures spreads and options, and practical trading guidelines.
Initially tpSWAPDEAL, which forms part of Tullett Prebon's rapidly expanding electronic broking services, will support trading in Euro denominated IRS, gap and butterfly strategies, matched maturity futures spreads, and tenor basis swaps.
Chance, "The Pricing and Performance of Stock Index Futures Spreads," Journal of Futures Markets (June 1988), pp.
Unlike temporal spreaders with futures contracts, no major special agricultural futures spreads exist as there are no agricultural products that are alike traded on two different exchanges separated by place.
1988, `The pricing and performance of stock index futures spreads', Journal of Futures Markets, vol.