# Parameters influencing Spread FUTIDX?

**URL:** https://tradingqna.com/t/parameters-influencing-spread-futidx/2747
**Category:** Algos, strategies, code
**Created:** [March 23, 2015, 10:16am UTC](https://tradingqna.com/t/parameters-influencing-spread-futidx/2747 "2015-03-23T10:16:50Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![VARMAN](https://tradingqna.com/user_avatar/tradingqna.com/varman/32/226_2.png) [@VARMAN](https://tradingqna.com/u/VARMAN)
#### Post date: [March 23, 2015, 10:16am UTC](https://tradingqna.com/t/parameters-influencing-spread-futidx/2747/1 "2015-03-23T10:16:50Z")

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Parameters influencing Spread FUTIDX ?

When spread between two contracts increase or decrease?

Example NIFTY

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<div class="post-metadata">

### Author: ![nithin](https://tradingqna.com/user_avatar/tradingqna.com/nithin/32/5_2.png) [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [March 24, 2015, 9:55am UTC](https://tradingqna.com/t/parameters-influencing-spread-futidx/2747/2 "2015-03-24T09:55:28Z")

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Theoretically it is the futures pricing that determines the spread between two calendars of the same contract.

Check this post: [http://zerodha.com/varsity/chapter/futures-pricing/](http://zerodha.com/varsity/chapter/futures-pricing/)

But practically it is the pricing formulae and the market forces. When I say market forces, there are certain times when people expect this expiry to be subdued and next one to go up, in this case the spread will be bigger. Similarly multiple such market forces can cause the spread to go up or down.