A spread contract is a financially-settled futures contract with an underlying price that is the differential between two different contracts, as opposed to trading the spread synthetically, which results in taking opposite positions in two contracts.
Available Euronext Commodity Spread Contracts
Spread contracts vs synthetic spreads trading
Why trade spread contracts?
Trading spread contracts provides advantages over trading spreads synthetically, where each leg is traded separately:
- Mitigate market and execution risk
- Better margin efficiency
- Lowered execution costs
- Streamlined trading and clearing fees
- Tailored trading strategy opportunities to suit specific market conditions and objectives for optimised positions such as rolling positions and trading back of the curve.
What are the advantages of trading listed-spreads on Euronext?
- Access attractive fee schemes
- Benefit from margin offsets when trading several commodity contracts on Euronext
- Take advantage of trading one single cash-settled futures contract and still bet on price difference evolution between two underlyings
- Mitigate currency risk and exposure with contracts traded and cleared in Euros via Euronext Clearing