Mercantile Exchange of Vietnam (MXV) started to organize Spread trading
Allowing Spread trading is part of the plan to add new products of the Mercantile Exchange of Vietnam in 2021. To prepare for Spread trading, MXV has been actively working with both domestic and foreign partners, and at the same time organize training for Business Members, Brokerage Members, especially in risk management when trading this product.
Spread trading is a popular arbitrage strategy, used when trading a lot of products, many different maturities. In spread trading, an investor simultaneously buys one standard forward contract and sells another standard forward contract in order to profit from the price difference between the two contracts.
Spread trading is suitable for investors who want to increase their trading when given the opportunity, maximize profits but still limit some risks. Besides, the low margin level is also one of the attractive factors for investors to participate in trading.
MXV believes that Spread trading will help investors have more products to choose from when trading at the Mercantile Exchange of Vietnam, bringing centralized commodity trading in the Vietnamese market closer to other markets, promoting the country's international economic integration.