Backwardation and Contango

This video provides a quick review of the concept of contango and backwardation. These two are opposite of each other.

A market is said to be in Backwardation, when the prices of a futures contract is trading below the expected spot prices at the contract maturity.

A market is said to be in Contango, when the price of a futures contract is above the expected spot price.

You may find these interesting

What is Contango?
A market is said to be in Contango, when the price of a futures contract is above the expected spot ...
What is Backwardation?
A market is said to be in backwardation when the prices of a futures contract is trading below the e...
Contago and Backwardation
- When an asset does not involve any storage costs, cash flows, and/or convenience yield, then one...
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOIN
JOIN 30,000 DATA PROFESSIONALS

Free Guides - Getting Started with R and Python

Enter your name and email address below and we will email you the guides for R programming and Python.

Saylient AI Logo

Accelerate your finance career with cutting-edge data skills.

Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.