Tuesday, January 6, 2009

Intra Commodity Spreads

Again, another simple trading idea, which will give you risk reduction and staying power.
All you do is trade two different months in the same commodity Your aim is to buy the month that is expected to increase most and sell another month to give you some risk protection.

Normally, the front month will move the most, so you buy it and sell a back month. This is known as a bull spread the reverse action in a bear market is a bear spread.
For example, the summer months are the strong ones in unleaded gasoline, so if your bullish buy them and sell a weaker back month as protection.

Spreading works particularly well in these futures markets:
Copper, energies, soybeans, wheat, coffee, sugar, cotton and all the meats expect bellies.
When using intra commodity spreads in futures trading, you need to take into account the general market trend and the strength of the spread. Spreading is great risk control vehicle and a way to get staying power an is a great tool for traders with small trading accounts.
All the above are simple tools, but don't be deceived by their simplicity. If used correctly they can all enhance your futures trading and give you bigger profit potential.

[ForexGen Introducing Brokers]

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, [ForexGen IB] is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

3 comments:

Steve Patterson said...

Great article on Bull and Bear Spreads. I like your Forex Trading information quite a bit.

trading said...

Nice post,
Thanks for your nice post..This is really blog post.

commodity brokers

Blogger said...

Hello Everybody,

Below is a list of the most recommended FOREX brokers:
1. Best Forex Broker
2. eToro - $50 minimum deposit.

Here is a list of top forex instruments:
1. ForexTrendy - Recommended Odds Software.
2. EA Builder - Custom Strategies Autotrading.
3. Fast FX Profit - Secret Forex Strategy.

I hope you find these lists beneficial...