| Amid fears of poor monsoon and depletion of old stocks, a few wealthy investors have begun taking cautious bets in commodity futures like castorseed, jeera and coriander through a relatively new product to benefit from price volatility on farm bourse NCDEX.
Called a spread contract, the product lets a trader lock in a spread or price difference between a near and mid-month futures contract.If she believes the spread would widen, she simply buys the spread and if it's expected to narrow, she sells the spread.Once the spread widens she offsets the position -sells and captures the difference...............................................Full Article: Source
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