Crack Spread
Definition
(1) In energy futures, the simultaneous purchase of crude oil futures and the sale of petroleum product futures to establish a refining margin. See Gross Processing Margin. (2) Calculation showing the theoretical market value of petroleum products that could be obtained from a barrel of crude after the oil is refined or cracked. This does not necessarily represent the refining margin because a barrel of crude yields varying amounts of petroleum products.
Related Terms Other terms related to 'Crack Spread' starting with the letter 'C' Combination, Conversion, Changer, Commodity Exchange Commission, Counter Trend Trading Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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