What is Contango & Backwardation?
Contango & Backwardation (also called contango, backwardation) — Contango is when futures trade above the spot price; backwardation is when they trade below it.
In simple terms
Commodity curves in contango cost more to roll forward.
Why Contango & Backwardation matters when you invest
Understanding contango & backwardation helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Contango & Backwardation — frequently asked questions
What is Contango & Backwardation?
Contango is when futures trade above the spot price; backwardation is when they trade below it.
What does Contango & Backwardation mean in the stock market?
Contango is when futures trade above the spot price; backwardation is when they trade below it. Commodity curves in contango cost more to roll forward.
Can you give an example of Contango & Backwardation?
Commodity curves in contango cost more to roll forward.
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