Contango
When longer-dated futures trade above the spot price.
In contango the forward curve slopes upward, usually reflecting storage and carrying costs. Holders who roll expiring contracts forward sell low and buy high each cycle, creating a roll cost that erodes long positions in things like commodity futures.
Learn it properly
Futures course →
Contracts, margin, and trading the world's benchmarks.
Related terms
Put it into practice. Log a trade, see it in your stats.
Start free