Looking to profit off of the spread...in a commodity futures contract? Welcome to the intermarket spread.
The intermarket spread is a strategy where an investor buys a commodity futures contract, then sells another futures contract at the same time in a closely related market. This strategy, like all spread strategies, is designed to make the investor a profit off the difference between two contracts (hopefully, the “sell” is higher than the “buy”).
Since the intermarket spread is for commodity futures contracts, the gains and losses to be made are through the underlying assets—whether steel, oil, or another commodity.