Gross Processing Margin (GPM)

What is Gross Processing Margin (GPM)?

Gross Processing Margin (GPM) meaning Refers to the difference between the cost of a commodity and the combined sales income of the finished products that result from processing the commodity. Various industries have formulas to express the relationship of raw material costs to sales income from finished products. See Crack Spread, Crush Spread, and Spark Spread.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary