The following picture is /NG Jun-July spread. July is usually hotter than June and therefore July natural gas has usually higher demand. Of course, time to time this can change for various reasons. However, statistical point of view, you have a high odd to be correct. Stop loss is $0 which is the point where contango becomes backwardation. Professionals trade spreads and spreads are much more liquid than outright trading. That's not coincidence.
Anyone here trade correlations?
- Thread starter Rapunzel
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