Understanding Intermarket Spreads: Platinum and Gold

Spread trading is a widely-used trading strategy in futures markets and offers some key advantages over outright futures trading (i.e., going long or short a single futures contract), including capital efficiencies with lower margin outlay and potentially superior risk-adjusted returns. This is particularly true for precious metals markets, where the underlying commodities demonstrate strong correlations with each other due to close economic links, but also distinct fundamental drivers that can create profitable spreading opportunities using the associated futures contracts.
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Lesson List
1
Understanding Supply and Demand: Precious Metals
2
What is Contango and Backwardation
3
How and Where Precious Metals are Traded
4
What is the Precious Metals Delivery Process?
5
Introduction to Precious Metals Risk Management/Hedging and Ratios
6
Gold & Silver Ratio Spread
Understanding Intermarket Spreads: Platinum and Gold