Creating Spread Charts
Spreads charts help to compare financial instrument against another variable. These charts try to provide new perspectives of an instruments' value and it’s thought to help highlight and thus alleviate some risk.
Our interactive chart offers you many different forms of spread chart and probably the two most common and simple to use are:
To use the spread chart feature:
- Add your first variable into the entry box in the upper left hand corner
- Add one of the following four mathematical operators: + - * /
- Add your second variable, again into the same entry & press enter
The intra-day chart spread is calculated by taking the Open, Low, High and Close of each 1-minute bar which is then recompiled into the selected interval. Complex as it sounds, this approach is the only one that results in the correct spread chart you want to see.
Dividing or multiplying an instrument by a currency pair allows you to see the price of that instrument in a different currency.
Therefore, if you want to see spot price gold in Euros rather than USDollars you type XAUUSD/EURUSD or XAUUSD*USDEUR as both give the same resulting currency conversion.
You can also use the spread by dividing one instrument with the other. This provides a spread value which can be tracked as if it was a single instrument; for example the silver to gold ratio.
To view the silver to gold ratio, type in XAGUSD/XAUUSD and if you want to view the gold to silver just swap the symbols to be XAUUSD/XAGUSD