Stock Market Investing: Spread Trade

Filed under Investing, Stocks


My dear reader,

If you happen to know any good article, any good book or any good seminar that discuss this topic, please let me know.

Spread - spread trade - spread trading

But not this spread aaar (Image cilok from TS)

From Wiki:

In finance, a spread trade refers to the act of buying one security or futures contract and selling another related one, in an attempt to profit from the change in the price difference between the two.

Links:

1. Spread Trading: To Spread Or Not To Spread

Books:

1. Amazon Books List on “Spread Trading”

My Words on Spread Trading:
From my early readings, spread is not a system but it is one of your useful additional tools to be integrated in your system. Why I am interested on this subject merely because the margin required to make spread trade is very low. Secondly, trader shall always find a way to reduce financial risk as much as he could. Remember, what has been advised by Warren Buffet?

It should be noted to that spread trading couldn’t make you a superstar trader which could make you 100% return in a single trade. It is not a bombastic technique. It just a technique that can produce you a small consistent return per month with very low risk.


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2 Comments

  1. Posted June 22, 2007 at 10:14 am | Permalink

    spread trade tu tak sama ngan arbitrage ke?

    Pakdi: Lain dude. Arb lain. Hedge lain. Spread pun lain :D

  2. Posted June 22, 2007 at 11:36 am | Permalink

    Alamak, apa ni. Saya memang jahil bab ni.
    :(

    Pakdi: Sikit-sikit. Mula dengan main Cashflow 101 duluuuu! :D

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