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Contango and backwardation
In one line: Whether later futures contracts cost more (contango) or less (backwardation) than nearby ones.
In contango, the futures price for later months is higher than nearby months or spot. In backwardation, it is lower.
This matters if you hold futures for a long time. A contract ends, so you have to 'roll' from one contract to the next. Definitions: CFTCThe US regulator for futures and derivatives. glossary.
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Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.