What Is the Concept of "Contango" in Futures Markets? ▴ Learn

What Is the Concept of “Contango” in Futures Markets?

Contango is a market condition where the futures price of a commodity or asset is higher than the current spot price. This usually occurs when the cost of carry (storage, insurance, interest) is positive, and market participants expect the spot price to rise or remain stable.

It is considered the "normal" market structure. The opposite is backwardation.

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

How Does the “Cost of Carry” Relate to the Basis in Traditional Finance?

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

What Is the ‘Cost of Carry’ and How Does It Contribute to a Contango Market?