What is Differential Trading?

Differential trading has been around for a long time, and many people have become very rich from using these techniques. But until now trading diffs has been complex, and only for those with deep pockets and lots of time.

But with Diff Code, you can now access these highly lucrative markets in just a few clicks of your mouse each morning.

So, what is a differential?

A differential is nothing more complex that ‘the difference’. It is a measure of the difference between two prices of two different financial markets.

Let’s say apples cost 40p each, and pears cost 37p each – the apple/pear differential is 3p.

If we speculate that the differential will increase … it means that we believe the difference between the two prices will increase.

If we speculate that the differential will decrease … it means that we believe the difference between the two prices will decrease.

But what’s so special about diffs?

Well, this is the really clever bit …

Let’s say that there’s an incredible harvest and we have a glut of fruit in the orchards … the apple and pear prices plummet. But our differential price is unaffected. They are still moving in similar alignment.

Likewise, if there’s a market bubble, or a market crash – the differential markets offer a degree of protection that you just can’t find elsewhere.

I’m talking about trading with a very high degree of success, with over 75% of our trades being successful (success rate is running at 83.5% at time of going to print).

In my opinion, trading in this way is the safest way to get exposure to the markets.

We can pick up profits, without having to put our money at risk of wild market swings.This means that it’s a very stable and reliable market.

Admittedly, it may not be the most exciting, fly-by-the-seat-of-your-pants way to trade! But I’m interested in making money, long-term, rather than just having a few winners and then wiping out (which is the way too many traders invest)!