Trading Oil Products & the "Crack Spread" | Closing the Gap: Futures Edition

What is a "Crack Spread" and how does it assist if you're interested in trading oil? See more videos from the Closing the Gap: Futures Edition Series: http://ow.ly/J0X2i A trade that is made up of the refined products that make up a barrel of oil is also known in the industry as a "Crack Spread". Ideally, when all of the products are combined, the price should be similar to a barrel of oil. However, this may not always be the case. Today, tastytrade is joined by Pete Mulmat of the CME Group. Pete explains how a barrel of oil is broken down and refined and how a crack spread should be structured, demonstrating that there can be numerous ratios to execute and add complexity to the trade. Then, the team puts Pete's information to use and trade their own crack spread! The gap between the self-directed and institutional trader in the world of Futures gets closer as Tom and Tony go head-to-head with one of the Futures market industry's best institutional traders. We bring professional strategies to individual investors. You can watch a new Closing the Gap: Futures Edition episode live and check out all previous episodes everyday at http://ow.ly/EoyGW! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Plus, access our visual trading platform, dough, to learn the basics of options trading and manage your portfolio! With hours of tutorial videos and unique tools on a simple, easy-to-use trading interface, dough.com is here to make learning how to trade options fun! Subscribe to our YouTube channel: http://goo.gl/s2bAxF Watch tastytrade LIVE daily Monday-Friday 7am-3:15pmCT: https://goo.gl/OTv3Ez Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/