With a spread, you follow the relationship, or difference between the contracts, without having to pick a market direction. When you trade an outright futures position there is only one way that you can make money.
With gold set to post negative year-over-year returns for the first time in 13 years, many traders are positioning themselves for an uncertain 2014. Amidst such volatility a trader must be very conscious of risk, and options are a vehicle to do that.
There are many ways to trade the energy markets. Some traders go the straight buy/sell futures route, but when it’s volatile, the best option is looking at the OTC market and playing different grades of crude.
Ever since the announcement that the flow through the Seaway pipeline would be constrained WTI's discount to Brent has been growing as the surplus of crude oil in the mid-west does not look like it is going to dissipate anytime soon.