Third, if the trade is done as a
spread position, then the actual margin requirements from
NYMEX are lower allowing greater leverage possibilities.
Even if position limits are reached, by being short one contract
and long another contract, the entity will have a better story
of why they have such large positions (i.e. the position is
naturally hedged) and may be allowed to engage in such
positions on the exchange. Fourth, spread positions allow for
more sophisticated hedge fund-like trades.