What does contango mean in futures markets?

Contango refers to a market condition where the futures price of a commodity is higher than the spot price, reflecting expectations of higher future prices due to factors like storage costs and interest rates.

How does contango affect futures trading?

Contango can result in negative roll yields for traders holding long futures positions, as they may need to buy new contracts at higher prices when the current contract expires, reducing their overall profitability.

Can I profit from contango?

Traders who anticipate rising prices can profit from contango by entering long futures positions. However, long-term holders should be aware of the roll yield impact, as contango can erode profits if not managed properly.

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What is CONTANGO?

CORRELATION WITH MARKET INDEX

Correlation with Market Index measures how an investment moves in relation to a market index. A correlation of 1 indicates perfect alignment, 0 indicates no relationship, and -1 indicates inverse movement.

TradeReply is an advanced analytics suite designed for crypto and stock traders to input historical trading data and leverage powerful visuals, graphs, and metrics to optimize and develop effective trade strategies with real-time insights.

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CORRELATION WITH MARKET INDEX

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