Sandor, who created the first interest rates futures in the 1970s and later a market for carbon emissions, envisioned interest rate futures because he understood the basic purpose of futures and saw a need.
How hard can it be to capture a 50 cent move in crude oil with a one-lot for a $500 profit throughout the course of a trading session? It sounds so easy. But, one of the major issues traders encounter is one of the seven deadly sins — GREED.
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.
The aftermath of the Depression in Europe gives a vivid demonstration of the power of monetary policy. One group of countries stayed on the gold standard; others came off and devalued their currencies.