Market Insights

Futures spreads are one approach some traders use to express views on relative price relationships, term structure, or intermarket dynamics. FuturesPlus provides tools for searching, filtering, executing, and analyzing both exchange-listed and synthetic spreads within a single interface.

The following overview outlines key spread-trading functionality available within the platform. Futures and options trading involves substantial risk and is not suitable for all investors.

Finding Futures Spreads

FuturesPlus allows users to locate spread instruments within Market Explorer.

Start by typing a root symbol, such as CL for crude oil, into the search bar. Results display two product types:

• Blue icon: Outright futures
• Red icon: Spreads

Hover over the spread icon and select Market Grid to load available crude oil spreads into a sortable view.

Refining Your Search

Futures markets may include numerous spread combinations across expirations and structures. Search filters help narrow displayed results.

To filter spreads:

• Click Explore to open the Advanced Search panel.
• Select CME as the exchange.
• Choose Spread as the product type.
• Enter the root symbol (e.g., CL).

To further refine:

• Click More to filter by spread type (e.g., Calendar, Butterfly, Strip).
• Select Calendar to display month-to-month spreads.
• Choose a specific term month, such as September, to display front-month calendar spreads against deferred contracts.
• Use Shift-click to multi-select expirations and display them together in Market Grid.

These filters allow users to organize available spreads according to preferred criteria.

Executing with MD Trader

Once spreads are displayed, orders can be entered through MD Trader.

Click a bid or ask to open the floating MD Trader window. Grouping MD Trader with Market Grid allows users to switch between spreads while maintaining access to the execution ladder.

Order entry mechanics:

• Click a blue bid cell to send a buy order.
• Click a red ask cell to send a sell order.

Within MD Trader:

• B indicates Buy orders and displays filled contracts.
• W indicates working contracts that have not yet been filled.

To modify or cancel:

• Right-click and drag to adjust price levels.
• Left-click to cancel.

Execution speed and fill quality depend on market conditions, liquidity, and order type.

Viewing Term Structure with Spread Matrix

The Spread Matrix displays spreads in a grid format.

In the matrix:

• The front-month contract appears along the left side.
• Deferred months progress chronologically across rows and columns.
• Hovering at the intersection of two months displays bid/ask pricing for that specific spread.
• Tooltips provide contract details.

Clicking a bid or ask opens an order entry widget. Once filled, the matrix reflects the number of contracts held in each expiration month.

This format can assist users in visualizing price relationships across contract months. Identification of relative value or pricing differences does not guarantee trading outcomes.

Creating Custom Spreads with Auto Spreader

Auto Spreader enables users to construct custom spread configurations.

Users can build:

• Intra-commodity spreads
• Inter-commodity spreads

For example, a user may construct a spread combining Nasdaq futures and ES futures.

Within Auto Spreader, users can:

• Adjust contract ratios (e.g., 3:1 ES to Nasdaq).
• Modify multipliers.
• Assign a name to the spread.
• Click Apply to add it to the control panel.

Selecting Open MD Trader with legs displays synthetic spread pricing alongside pricing for each leg, allowing users to monitor individual components.

Custom spreads may involve additional complexity and risk, including legging risk and execution differences between components.

Charting Exchange and Synthetic Spreads

FuturesPlus supports charting for both exchange-listed spreads and synthetic spreads created in Auto Spreader.

To chart a spread:

• Open a blank chart.
• Select the desired spread product.

Historical price data can be reviewed for analytical purposes. Past performance is not indicative of future results.

Futures and futures spread trading involve substantial risk of loss and are not suitable for all investors. Traders should carefully consider their financial situation, risk tolerance, and trading objectives before participating.

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