What is Contango and Backwardation

Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.
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Lesson List
1
Understanding Supply and Demand: Precious Metals
What is Contango and Backwardation
3
How and Where Precious Metals are Traded
4
What is the Precious Metals Delivery Process?
5
Introduction to Precious Metals Risk Management/Hedging and Ratios
6
Gold & Silver Ratio Spread
7
Understanding Intermarket Spreads: Platinum and Gold