Yes, spread orders can be used in day trading, especially in options and futures markets. They help traders reduce risk while capturing small price movements.
Use limit orders to control entry and exit prices. Ensure sufficient liquidity in the market to avoid slippage. Be aware of expiration dates for options spreads. Monitor implied volatility for…
High volatility can increase the price difference between the two legs, affecting profitability. Low volatility benefits certain strategies like calendar spreads and butterfly spreads.
