The spread trading strategy is a popular way to make money in financial markets by engaging with commodity and financial asset derivatives. There are many ways to utilize futures spread trading for Bitcoin and other cryptocurrencies. We will talk about this technique and ways to automate it using publicly available tools.

What is futures spread trading?

The first thing you should know is what a futures contract is. It is a financial derivative based on a contract representing a specific asset. The holder of such a contract agrees to sell or acquire a particular quantity of assets at a certain point in time in the future. The earliest incarnations of these instruments appeared in antiquity, when traders and farmers attempted to protect themselves from numerous hazards such as weather and war.

Today, a futures contract can be issued for any financial asset. Bitcoin and Ethereum are based on perpetual and standard futures.

When it comes to futures on commodities, traders can benefit from a spread — the difference between buy and sell prices. How to trade spreads? To benefit from a price discrepancy, a trader may utilize two types of approaches:

• Inter-Commodity. You may use this approach to take two positions on codependent assets or commodities. A good example is an electric car manufacturer and an oil producer. You may be bullish on the industry of electric vehicles and buy futures on shares of a company that produces them. Simultaneously, you sell futures on shares of an oil company or oil in general. The profit comes if the former outperforms the latter.
• Intra-Commodity. This approach is useful for retail traders who understand markets and can predict how prices may change over a long period. For example, you may buy futures on a commodity with an expiration date in March and sell futures expiring by the end of the year. The difference between these prices will be your profit when you liquidate your positions.

Crypto futures spread trading: the complete guide

Cryptocurrencies are slightly different from traditional assets and commodities. First Bitcoin futures spread trading techniques started popping up in 2017 when derivatives were introduced to the crypto market. Strategies involving cryptocurrencies work for people capable of predicting changes in prices over several months.

Here is a practical example and a simple spread trading tutorial:

1. If you feel the price of Bitcoin will rise over the next month, just purchase a one-month contract and sell a two-month contract. The price difference is what you keep after liquidation positions.
2. If you believe that the price of Bitcoin will go down during the next month, you need to sell a contract one month out and buy a contract two months out, again, acquiring the profit by catching the price discrepancy within the two months.

It does sound quite simple and it is. However, spreads are usually quite small, and making money without using leverage is challenging and takes a long time. You may try working with the margin account or increase the size of your portfolio and automate the process to increase the number of orders you make on the market at opportune moments.

There are specific strategies that work for day traders working with futures. These can be automated using platforms like WunderTrading where retail traders use signals from the analytical website Tradingview to make orders automatically. You can also adjust stop-loss and take-profit scenarios to control risks.

Should you try spread trading?

While many people believe that this trading system is excellent for beginners, futures spread trading strategies are quite complicated and require retail traders to understand price dynamics and make correct predictions about the market. Spread trading can backfire epically if you fail to make a correct prognosis and use leverage.

Use WunderTrading’s free account to launch a couple of bots with a spread trading strategy and backtest them on the Bitcoin chart. Adjust variables until you find a good setup that appears to deliver results consistently against the historical data. While past results will never guarantee profits down the line, you may come up with a strategy that delivers reasonable profits regularly.

Spread trading is great when you know the history and can extrapolate the available data to make correct guesses about the market direction in the nearest future. However, people who do not have the same keen eye for price dynamics should be careful when trying to make futures spread trading work. These are quite dangerous strategies for beginners.

A futures spread trading approach is deceptively easy and requires a lot of knowledge about the assets you want to work with. When mastered, this technique can be extremely effective and bring you massive profits!

Being unemployed is a difficult place to be in. Not being able to generate enough money can quickly put anyone in a position of peril. Lack of sustenance means that, in one way or another, we will have to find a way to make cash, and the best way to go about this when we can’t find an actual job is by working online. Technological progress accompanied by constant investment in the internet has facilitated the online job market.

Best Ideas for Making Money Online

Thanks to the advancements of the internet, the world has become a small village with improved communication and service delivery. It has created an avenue where people can earn a source of living with or without getting into an office. The internet has also changed how employers employ people and how employees also perform their tasks. However, you don’t need to be an employee for you to be able to make money online. The internet offers several avenues to make cash regardless of location. This article will discuss some of the best ways to make money online in France.

Becoming an Influencer

In the modern world, most people are on different social media platforms. These people tend to emulate whatever they see on social media based on whoever they follow. If you have a substantial social media following, you significantly influence those following you. You can achieve this influential status from your posts, which may include videos of places you have visited, such as the Louvre Museum, or even a picture of your favorite dish that you were having in La Table de Colette. Depending on your interactions with your social media followers, brands may approach you to work with them to promote their products on your social media accounts.

You will earn by advertising these products on your social media platform, generating revenue for you. In some circumstances, they will pay you royalties depending on the number of products purchased using the promo code you share on your social media platforms. The social media platforms will also pay you according to the number of views, likes, and comments you get.

Creating a YouTube Channel

Content creation has evolved over the years, and there has been an increasing demand for videos uploaded on YouTube. These videos can be entertaining, educative, funny, or teach about life skills. You can start a YouTube channel by picking one of these ideas:

• Music

You can start a YouTube channel that concentrates on producing musical content. This content can include doing music covers for famous or trending music, doing the original songs you have written, creating music instrumentals, or doing a remake or remix. You can also interview musicians, including both upcoming musicians and well-established musicians.

• Travel

If you love traveling, you can document places you visit, including famous hotels and cities. While traveling, you can advise specific people, like couples looking for a wedding destination or friends who want to go hiking or camping.

Blogging

Blogging is another excellent way to make money online in France. Choosing a current topic for your blog will help you generate much-needed traffic. These topics may include mental health, parenting, gaming, pets, or gardening. If you have a good blog with good traffic, then major brands that deal with your main topic will approach you for endorsements and advertising. You will then earn money from the advertisements you get from these brands.

Writing

Several content-creating companies are in constant need of professional writers. You don’t need to be perfect, as some companies offer free training to those interested in working for them. These companies include Upwork, where you can get any writing job; PayPerContent, which majorly deals with articles; and Fiverr, which also deals with every kind of writing.

Filling Online Surveys

Companies need constructive feedback to be able to improve their service delivery. This feedback usually comes from companies contracted to collect it. You can make money online in France by completing these surveys. One of the companies that would pay you for every completed survey is Pawns.app.

Final Thoughts

Anything can be achieved online; the only thing you need is commitment and hard work to make money. Again, with the right research, you can have the proper knowledge that will enable you to make decent money regardless of your location.