How To Trade Oil Using The Crack Spread #oiltrading #futures

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Discover the profitable trading strategy of the crack spread with Jonathan Rose in this free PDF guide. Learn how to leverage this market signal to anticipate price movements in the oil market and refinery stocks, and find undervalued opportunities for long-term investing. Join Jonathan as he shares insights and correlations in the refinery industry, offering a high percentage trade for traders and investors alike.

[traderalbert]

Hello,
I have a question. This makes me wonder :) Why 42:1 ratio ? Typical is 1:1 (based on 1 barrel = 42 gallons, 1 cl contract is 1000 barrels=42 000 gallons and 1 rb contract is 42 000 gallons=1000 barrels) also understandable is 3:2:1 or 5:3:2 (refining ratios), if we calculate it based on ATR we also have almost 1:1, exchanged traded spreads have also "normal" ratios. So why 42:1 ? (except the fact that it looks nice on the chart :) ). There is no hedge in it and the margin required for this would be quite large ?