// TRADING TERMINOLOGY

What is Contango?

A situation in the futures market where the forward price of a commodity is higher than the spot price.

In-Depth Explanation

This usually implies that investors are willing to pay a premium for a commodity in the future, often due to storage costs.

"The oil market is in contango, with the 6-month contract priced higher than the current spot price."

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

Buying an asset with the expectation that its value will increase.

Selling an asset (or a contract) with the expectation that its value will decrease.

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