On Mon, 28 Jan 2013, Otared Kavian wrote:

Hi Janne,

Personnally I prefer to use the Plain TeX alternative \over (which works fine 
in ConTeXt), that is
        ${a \over b}$
instead of
        $\frac{a}{b}$

Compare the following two outputs in the example you want to typeset: I think 
the second is more or less what you want

\starttext
Using \type{\frac} gives:
\startformula
f_{B_t | B_s = S, B_u = U}(x) = \frac{e^{-\frac{(u-s)x^2 - 2x(S(u-t) +
U(t-s)) + \frac{(S(u-t) +
U(t-s))^2}{(u-s)}}{2(t-s)(u-t)}}}{\sqrt{2\pi\frac{(t-s)(u-t)}{u-s}}}
\stopformula

Formatting and temporary macros (I usually use \1 \2 etc) make a huge difference
in readability:

\startformula
  \def\1
      {\frac{
               (u-s)x^2
               - 2x(S(u-t)
               + U(t-s))
               + \frac{(S(u-t) + U(t-s))^2}
                      {(u-s)}
            }{
               2(t-s)(u-t)}
            }
  %
  f_{B_t | B_s = S, B_u = U}(x) =
      \frac { e^{\1} }
            { \sqrt{2\pi\frac{(t-s)(u-t)}{u-s}} }
\stopformula

\blank
Using \type{\over} gives:
\startformula
f_{B_t | B_s = S, B_u = U}(x) = {
e^{-{(u-s)x^2 - 2x(S(u-t) + U(t-s)) +
{(S(u-t) + U(t-s))^2 \over (u-s)} \over 2(t-s)(u-t)}} \over
\sqrt{2\pi {(t-s)(u-t) \over u-s}}}
\stopformula

\stoptext

At some stage, we also need to look at nath's automatic conversion of display
fractions to inline fractions (e.g., in the numberator \frac{ (S(u-t) +
U(t-s))^2 } { (u-s) } should be typeset as (S(u-t) + U(t-s))^2/(u-s) because it
is being typeset in \scriptstyle.

Aditya
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