Barclay's iPath offers the Dow Jones-UBS Platinum Subindex Total Return ETN (PGM), which owns a single,
nearby futures contract.
New York: The New York Mercantile Exchange's benchmark, the West Texas Intermediate light sweet crude
nearby futures contract, continued to decline even as Brent sweet and Gulf heavy sours gained last week.
They have "put on a spread" by buying the nearby futures contract and selling the faraway contract.
When the temporal spread becomes smaller than normal, the arbitrager will "put on reverse spread" whereby he or she simultaneously sells the nearby futures contract and buys the faraway futures contract.
The purchasing manager (Figure 2- A) has arranged for particular items to be priced on a cost-plus formula from the nearby futures price for each raw commodity, where the nearby futures contract is the futures contract month closest to expiration.
t-1]) for the nearby futures contract (635 observations).
And therefore, the March delivery month
nearby futures contract for West Texas Intermediate light sweet on the New York Mercantile Exchange, after reaching $43.
reverse spread--a simultaneous position that involves having a sell position on the nearby futures contract and a buy position in a more distant futures contract.
spread--the simultaneous position involving an initial buy of the nearby futures contract and an initial sell of a more distant month.
The Dynamic Long VIX Futures Index tracks the performance of the combination of a hypothetical money market instrument and a dynamic strategy that is designed to provide efficient long exposure to the first five
nearby futures contracts on the CBOE Volatility Index VIX.
