In eSignal, you create spreads using spread symbols and the Spread Symbols Settings window found under the Tools menu.

This window allows you to create your own custom symbols by specifying a simple or complex spread with parentheses or multiple operators (+ - * /). In addition to using multiple symbols in a spread, you can also use numerical constants, such as MSFT + 50.

Once you create a spread symbol, you can enter it into other windows, such as a Quote window or a Chart window, to plot the results of the spread. You may also use the new spread symbol to calculate other spreads.

Steps for Creating a New Spread Symbol

Calculation of Spreads

With eSignal 7.9 and later, you calculate spreads displayed on intraday charts by taking the Open, High, Low and Close of each 1-minute bar, and, then, you can recompile it into the selected interval. This results in more accurate spreads than previous versions of eSignal, but it also requires that you download and process more data.

For instance, on a 60-minute spread chart, instead of doing 1 calculation per bar, eSignal now has to request 60 times more data and perform 60 calculations just to come up with 1 bar. Depending on the complexity of the spread and the number of symbols in the spread, this can lead to a significant increase in the amount of time to display a spread chart.

Prior to 7.9, eSignal used the OHLC from the selected interval for the spread calculation. This sometimes led to significant differences between the actual and displayed spreads.

The new spread "engine" produces much more accurate spread results. Because of this, we recommend upgrading to the latest version of eSignal.

Why Do I See Decimals When I Look at Futures Spreads?

Some futures symbols in eSignal are shown in fractions. eSignal Advanced Spread charts must convert the fractions into decimals to properly calculate the spread data. For additional information, please see our article on CBOT Bond & Note Pricing: (http://kb.esignalcentral.com/article.asp?article=1697&p=1).

Entering Spreads Prior to eSignal 7.9

Spreads were originally introduced with eSignal 7.0 but only worked in the Advanced Charts feature. In eSignal 7.5, we added the feature that allowed entering spreads into the Quote Window and the Quoteboard.

eSignal users using eSignal versions from 7.0 to 7.8 should follow the directions provided subsequently when entering spreads.

To enter a spread in an Advanced Chart:

Here are a couple of examples of this:

ES #F - SP #F
IDC * IBM

You can also enter multiple or fractional symbols as part of a spread. The multiple or fractional number must be in front of the symbol without any spaces.

Here are a few of examples of this:

DELL + .3MSFT (DELL plus 1/3 of MSFT)
50CSCO - 25YHOO (50 times CSCO minus 25 times YHOO)
11INTC / 5AOL (11 times INTC divide 5 times AOL)
1.27IDC * .001$INDU (1.27 times IDC multiplied by 1 thousandth of $INDU)

For futures contracts beginning with a number, such as 6A #F, please include the symbol in apostrophes.

Here are two examples of this:

$SPX * '6A #F'
.5'6S #F' + .5'6A #F'

You should also keep in mind that, when you start typing a number in an advanced chart, it reacts as if you're entering an interval. If the beginning of the symbol you want to use is a number, you need to type any letter to get the entry box open, backspace off the letter and, then, enter the symbol.

It is possible to weight a spread. Although you can't use numbers alone in a spread, you can weight a symbol.

Here are a few examples:

ES #F - 5NQ #F
10ES #F - 94NQ #F
1.43ES #F - 17.465NQ #F
.25ES #F - .94NQ #F

The number must directly precede the symbol with no space and be a whole number or a mixed number using a decimal. This only works in a spread, so you can't create a single symbol, such as 5MSFT or .33DELL. If you do want something like that, you can, however, do 6MSFT - MSFT to get the 5MSFT or 1.33DELL - DELL to get the .33DELL.

Note: Advanced Tick charts do not allow for spreads because they are based on individual ticks and not bars.

With eSignal 7.9, the Spread Symbol Settings will allow users to create easy and complex spreads based on the samples shown previously but will also allow you to use numerical constants with multiple operators (+ - * /). Use the created spread symbols as part of another spread. Let's use TEST1 as an example.

To create a TEST2 spread symbol for (DELL + MSFT + 3), subtracting 2, the spread will be TEST1 - 2 because TEST1 is DELL + MSFT + 3. Another feature of the Spread Symbol Settings is the decimal formatting.