SPREAD - misunderstood concept

The SPREAD concept is not only confined to Commodities. It is a "generic" concept but given a marketing brand or label.

There are times we compare 2 or more stocks and choose to SWAP one for the other. This is another form of spread. As long as we take a comparison between 2 than that is a spread.

The elasticity range of spread is "limited" unlike outright which is "very" elastic. Calendar spread margin is normally 25% of outright. In theory, the spread range should be 25% of the outright. HOWEVER, which pair will provide the equivalent?  Or which spread pair will provide the value for money and contain risk? 

Different months will give different elasticity or volatility and each different pair will NOT provide the 25% equivalent.

The leveraging as we learnt in physics refers to fulcrum and the more away from the fulcrum the wider the range. This brings us to the next question about liquidity and BID ASK quotes.

The nearer the pair months the more liquid they will be. The further far out they are the more illiquid they become. This means we need to find or identify the months that provide a balance of liquidity and leveraging so that we do not loose on the GAPS between BID ASK