Hello I am an equity guy, so pardon my ignorance. In equity, we usually construct long and short positions that have the same $value so that we profit on convergence in % term. In commodity, how do you usually construct a spread? Say if i wanna do a Platinum/Palladium spread, is it "usually" done 1. $neutral or 2. size neutral (in terms of troy ounce)? if palladium (pa) is at $720, platinum (PL) at $1780. which is usually done? 1. PL $position = 89000 (1780*50), PA $position = 72000 (720*100), so 1.24 PA contract for each PL contract. 2. PL size = 50, PA = 100 ounces, so 0.5 PA for reach PL contract. since what i am betting is convergence in % term, i am leaning towards $neutrality, but seems that a lot of people trade on size neutrality