Spreads are wide used in futures trading by insiders of market like professional futures brokers and other inner people of market. They don’t reveal the secret of trading in spreads easily to common traders. There are many benefits attached in this type of trading as compared to open futures contracts. So insiders don’t want to give away their edge and retain distinct advantages to them selves.

There are many great benefits attached with spreads some of these are less margins requirements in inter-market and intra-market for spreads. Most of the time, 25% to 75% margin is required for good futures position. There are quite high return margins offered by inter-market and intra-market spreads as compared to outright futures. This is due to fact that you are giving fewer margins for same amount of money return. Generally, spreads have greater trends as compared to other outright futures. They show trends when outright futures go flat.

You can filter spreads on the basis of backwardation, seasonality, charge differentials plus any other filters that you may use in your trading. You can use spreads to create futures positions partially. As a matter of fact, there is nothing that you can’t do virtually with spreads as compared to futures. It offers to play at quite less risk as compared to other trading. You can get quite good legging in or out by using spreads in the time of market closing. You can get away from idea of stop running by using intra market spreads.