Add training workflow, datasets, and runbook

training_data/curated/text/53a1a8564352ac9839e17a54cef411fa8fa4432312da0b461ac46c82dfedbcce.txt

@@ -0,0 +1,43 @@
+442
+A Complete Guide to the Futures mArket
+commodity is too high or low relative to a closely related commodity. some examples of this 
+type of spread include long december cattle/short december hogs and long July wheat/short 
+July corn. The source/product spread, which involves a commodity and its by-product(s)—for 
+example, soybeans versus soybean meal and/or soybean oil—is a specific type of intercommod-
+ity spread that is sometimes classified separately.
+usually, an intercommodity spread will involve the same month in each commodity, but 
+this need not always be the case. ideally, traders should choose the month they consider the 
+strongest in the market they are buying and the month they consider the weakest in the market 
+they are selling. Obviously, these will not always be the same month. For example, assume the 
+following price configuration:
+December February april
+Cattle 120.00 116.00 118.00
+Hogs 84.00 81.00 81.00
+given this price structure, a trader might decide the premium of cattle to hogs is too small 
+and will likely increase. this trading bias would dictate the initiation of a long cattle/short hog 
+spread. However, the trader may also believe February cattle is underpriced relative to other 
+cattle months and that december hogs are overpriced relative to the other hog contracts. in 
+such a case, it would make more sense for the trader to be long February cattle/short decem-
+ber hogs rather than long december cattle/short december hogs or long February cattle/short 
+February hogs.
+One important factor to keep in mind when trading intercommodity spreads is that contract 
+sizes may differ for each commodity. For example, the contract size for euro futures is 125,000 
+units, whereas the contract size for British pound futures is 62,500 units. 
+thus, a euro/British 
+pound spread consisting of one long contract could vary even if the price difference between 
+the two markets remained unchanged. 
+the difference in price levels is another important fac-
+tor relevant to contract ratios for intercommodity spreads. the criteria and methodology for 
+determining appropriate contract ratios for intercommodity spreads are discussed in the next 
+chapter.
+ 3. the intermarket spread. this spread involves buying a commodity at one exchange and sell-
+ing the same commodity at another exchange, which will often be another country. An example 
+of this type of spread would be long 
+new Y ork March cocoa/short London March cocoa. trans-
+portation, grades deliverable, distribution of supply (total and deliverable) relative to location, 
+and historical and seasonal basis relationships are the primary considerations in this type of 
+spread. 
+in the case of intermarket spreads involving different countries, currency fluctuations 
+become a major consideration. intermarket spread trading is often referred to as arbitrage. As 
+a rule, the intermarket spread requires a greater degree of sophistication and comprehensive 
+familiarity with the commodity in question than other types of spreads.