how do you chart spreads? - Stockxpo - Grow more with Investors, Traders, Analyst and Research

how do you chart spreads?

When creating commodity spread charts on my charting platform, I see one can use an "operator" of: addition (+), subtraction (-), multiplication (*) or division (/) — under what scenarios would one use each of these 4 symbols?

For instance, say I wanted to chart: Long March Soybean Oil and Short January Soybean Oil – would that be: March Soybean Oil divided by January Soybean Oil? Or March Soybean Oil – January Soybean Oil ?

Can someone shed some light on when to use: + – / * when charting spreads?

Also, any book recommendations for spread trading?

Thanks!

submitted by /u/RareInk
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