Traders often use spread charts to visualize the relationship between a stock, commodity or bond against a benchmark. Like many commodity traders, Lex often relied on spread charts when he was trading crude oil earlier in his career. In the fixed income world, investors use these charts to monitor the difference between a particular bond’s yield versus a benchmark such as a 10-year government bond as a measure of risk. Regardless, spread charts are an important reference for any trader or investor and this tool will support your analytical process.
