The purpose of a spreading strategy with futures contracts is
A) to maximize potential profit.
B) increase leverage.
C) limit potential losses.
D) hedge against price changes in the underlying commodity.

Question

Quizplus · Accepted Answer

Spreading strategies with futures contracts are designed to limit potential losses by taking offsetting positions, which can mitigate the impact of adverse price movements.

The Purpose of a Spreading Strategy with Futures Contracts Is