"The guy who spreads and makes a little every day is the one who walks away
with the big money" A veteran trader, quoted in Futures
The Complete Guide to Spread Trading outlines the many profitable advantages of spread
trading, along with explanations and illustrations of how you can expect spreads to
perform in the heat of trading. Self-contained chapters introduce more than two dozen
representative spread strategies, discussing the market background and driving economic
factors of each strategy, showing how to structure the spread, and reviewing how such
spread trades have historically performed in various market environments.
Keith Schap, a long-time author of options and futures training material, explains how
to set up and manage spreads of every type in every market as he provides you with:
Explorations of numerous spread trading techniques from basic to advanced
Instructions for structuring a spread trade and analyzing its results
A fundamental discussion of spread logic and what exactly it means to buy or sell the
spread
How using option spreads can dramatically reduce the downside risk of virtually any
market in which you trade
A detailed look at specific yield curve spreads and what changes in these spreads can
tell you about the overall economy
Strategies for using straddles and strangles to generate profits in static, sideways
markets
Chapter-ending "A Word of Caution" sections that outline potential perils of
chosen strategies and proven techniques for avoiding or repairing them
Because spread trades have a basis in the economics of the markets involved and employ
a structure designed to respond to those economic drivers, they have become popular with
professional traders of all types. The Complete Guide to Spread Trading introduces you to
the profitable benefits of spreads and walks you through play-by-play descriptions of
actual trades in numerous markets, giving you the knowledge and confidence you need to
make spread trading a high-percentage, lower-risk component of your overall investing and
trading strategy.
Keith Schap is a former senior writer for the Chicago Board of Trade
and senior editor with Futures. The coauthor of Seven Indicators That Move the Markets,
Schap has contributed hundreds of articles to Futures, Treasury and Risk Management,
Derivative Strategies, and other trade journals.
Hardback
370 pages