Yes, that’s the exchange supported spread which is internally matched and filled by the exchange (no legging risk for you). You will see a single price DOM ladder, but when you’re filled you will see multiple futures legs in your fill window. Most of what we do are combinations and permutations of exchange supported spreads.
I am not an expert trading this spread Heispark to be honest. It's an exchange traded spread. It means, it is represented as a single contract for trading, but it is not very liquid. You might do better by simply trading both contracts (HO and CL) separately. Note: you need to create an so called equity chart because both sides of the spread have a different unit value (420*HO - 1000*CL). Also note this spread can easily move $10,000 a day at the moment!
Even during the trading day the volume is not getting much better in this exchange traded spread. Not a good place to be.
The exchange spread is simply the exchange internally matching firm orders in HO and CL. Manually legging the spread would be insane. You can also improve the best bid or the best offer in the exchange spread. Personally, I’m all about the Gasoline Crack this time of year.
Well a Heating Oil Crack in June makes zero sense. Again, the Gasoline Crack is the play here. Let’s have a modicum of sense here people. Jeez.
There has been so much opportunity in the WTI, Brent, and NG forward curves the past few years - I honestly can’t remember the last time I personally traded a Crack (it’s been over a year for sure). It’s liquid and it’s where the Commercials play.
I was interested in crack spread expending, that is if I can buy near zero dollar level, I am nearly guaranteed to make money because crack spread never goes below zero. Betting to spread narrowing looks somewhat risky. Current crack spreads are examples. IMHO, /NG calendar spreads during high demand seasons are more attractive than crack. I made a decent profit betting NGM22-NGN22, NGV22-NGX22 and NGM23-NGN23 this month (all betting contango spread widening). And I am currently holding NGX22-NGZ22-NGF23 butterfly.
Regarding your live cattle spread chart, are you going to bet spread expansion? When I see 20 years of history charts, downside risk is bigger. What do you think?