How Does 'Contango' and 'Backwardation' in the Futures Market Relate to the Cost of Carry? ▴ Learn

How Does ‘Contango’ and ‘Backwardation’ in the Futures Market Relate to the Cost of Carry?

Contango is a market condition where the futures price is higher than the expected spot price at contract maturity, typically occurring when the cost of carry is positive. Backwardation is the opposite, where the futures price is lower than the expected spot price, often due to a negative cost of carry or high convenience yield.

What Is the Concept of ‘Contango’ and ‘Backwardation’ in Token Futures Markets?

What Is the “Roll Yield” and How Does It Relate to Contango and Backwardation?

How Does the Concept of ‘Contango’ or ‘Backwardation’ Apply to Futures Contracts on Vulnerable Altcoins?

Define ‘Roll Yield’ and Its Impact on a Futures-Based ETF