Four Commodities With Uphill Contango Curves

By Commodity HQ  MAR 11, 2013 2:20 PM

More expensive futures contracts can hurt a long-term position, but they can also be played to the advantage of the savvy trader.

 


Contango is a natural phenomenon in the world of commodity futures. Some view it as an evil that plagues the space, but in reality it is just another pattern that traders can profit from. Contango, simply put, is the process by which futures contracts get more expensive as the maturity dates get further out from spot. While this can hurt a long-term position, savvy traders can use this uphill curve to their advantage. Below, we outline several commodities exhibiting contango to help you make the best trading decisions for your portfolio.
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Editor's note: This article by Jared Cummans was originally published on Commodity HQ
No positions in stocks mentioned.