General Market Question
How do you figure out the crack spread?
Asked by dyson in
General Market
one year ago
Best Answer
178 points
LCDee answered one year ago …
I think you're a little confused, dyson. The "crack spread" isn't a number or a calculation you "figure out". The definition according to the TickerHound dictionary:
A commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures.
Think of it like an option spread, one trade helps to offset the risk of the other.
Answers
904 points
jillybeansisme answered one year ago …
Unless you're a "street drug" dealer . . . (sorry, I just couldn't resist).
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