Contango vs. Backwardation

Contango is a term used in the futures market to describe an upward sloping forward price curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed").  Futures contracts have specific maturity dates for delivery such as March ’09, June ’09, etc.  If you are buying … Continue reading Contango vs. Backwardation