A petroleum refiner producing gasoline and heating oil could use a futures crack spread to lock in both the cost of oil and output prices. As the refiner buys crude oil as an input, that is the long futures position in the crack spread; as the refiner sells gas and/or heating oil, that’s the short position.
Duration : 0:5:17
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December 15th, 2009 at 12:20 am
Hello Mr Harper, …
Hello Mr Harper, Could you help me to understand why in the crude oil future markets, lots of traders often trade Jun/Dec & Dec red Dec future calendar spread, are there any fundamental reasons behind this?
December 15th, 2009 at 12:20 am
Cool…makes it so …
Cool…makes it so intuitive..Thanks Mr Harper..all great videoes!