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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Slumdog who wrote (143776)10/11/2018 8:00:16 AM
From: ggersh  Respond to of 219136
 
I believe it to be right, contango always messed with me
for the way I traded it wasn't necessary to watch for it.

Usually when contango occurs and from what I've seen
it happens mostly in the oil markets is that supply for
today is impossible to get hence price goes higher, than
the back months.

Don't take my word on it though, I'd definitely Google
or Duck Duck GO it.....my mind ain't what it used to be -g-

Contango
Contango is a situation where the futures price of a commodity is higher than the anticipated spot price at maturity of the futures contract. In a contango situation, arbitrageurs/speculators, are "willing to pay more [now] for a commodity at some point in the future than the actual expected price of the commodity [at that future point]. More at Wikipedia

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