SwissTradingSchool

ZWZ2019-ZSX2019 - Commodity Spread Trading

Long
ZWZ2019-ZSX2019
Wheat December 2019 - Soya November 2019
Interesting spread between the December futures contract of Wheat and the November contract of Soya.
As it is statistically deduced from our software, in this case the Moore Research, we have a percentage equal to 87% in which this difference is reduced, and therefore, a normal convergence of the two values of the contracts that bring their distance closer to 0 rather than move it away.
The very nice thing about this type of operation is the reduction of the volatility that can cause sometimes big problems. For example if on the soya there should be some important news its value could vary suddenly and the grain, being a correlated of it, would follow it consequently and it is for this reason that through the Spread Trading these potential unexpected problems are avoided.
www.mrci.com/client/...eads/strat/s5046.php

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