MRCI has always quoted spreads by listing the long side first and the short side second.
While there is no universal industry standard for quoting spreads, some traders and charting services use alternative methods, such as arranging contracts so the spread value is always positive. Because MRCI's recommendations are based on seasonal patterns rather than the absolute spread price, we chose a convention that reflects the actual trade being recommended.
One important advantage of this approach is that, once the position has been established, traders generally want the chart to move upward to indicate profits.
Why Does MRCI Use This Convention?
Different charting services and traders may display spreads in different ways. Some methods attempt to keep spread values positive by reversing the contract order.
MRCI's approach focuses on the actual trade:
- Long position listed first
- Short position listed second
- Profitable positions generally appear as rising charts
This makes seasonal spread charts easier to interpret and follow.
As a general rule:
- MRCI always lists the long leg first.
- Contract months refer to the nearest delivery month available at the time of entry.
- Deferred contracts are clearly identified with terms such as Red or Green when necessary.
Following these conventions helps ensure that traders are viewing the same spread relationships shown in MRCI's seasonal charts and recommendations.
