Gross Processing Margin

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Gross Processing Margin

The gain or loss one realizes by taking a long position in a commodity and a short position on a finished product made from that commodity. This allows the investor to create an artificial position on the price of making the finished product. The gross processing margin measures how successfully one does this. See also: Crack spread, Crush spread.
References in periodicals archive ?
The company's 2005 results also reflect increases in commodity prices and favorable gross processing margins in its gathering and processing segment.
However, gross processing margins, the difference between the value of NGLs versus their value in natural gas form, was still below historical averages which adversely impacted margin in our Processing segment.