{"id":48676,"date":"2024-02-24T11:40:55","date_gmt":"2024-02-24T10:40:55","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=glossar&p=48676"},"modified":"2024-04-09T13:01:12","modified_gmt":"2024-04-09T11:01:12","slug":"contango","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/contango\/","title":{"rendered":"Contango"},"content":{"rendered":"

This is a technical term that you may have come across if you are interested in the Commodity trading with futures<\/a> are interested in. In this article, we show you exactly what contango means.<\/p>\n\n\n\n

\"Futures<\/figure>\n\n\n\n

Contango definition<\/h2>\n\n\n\n

With futures, investors can Agreement on a future delivery <\/strong>of a raw material. A price is agreed in the process. There is a fixed key date<\/strong>on which payment and delivery are due. <\/p>\n\n\n\n

Contango is a kind of Surcharge<\/strong>. The price of a futures contract on the underlying asset is higher than the current spot price. Underlyings can be, for example Raw materials<\/a> or Currencies<\/a> be. <\/p>\n\n\n\n

A contango situation therefore occurs when rising prices in the underlying <\/strong>are expected. The reasons for this can be manifold. The price increases depending on the time elapsed. <\/p>\n\n\n\n

Contango is not a special case, but rather the usual case. In the pricing process Costs incurred<\/strong> The price includes additional costs such as the storage of the raw material or necessary insurance. A surcharge is applied to cover these costs. <\/p>\n\n\n\n

Investor expectations can also play a role and influence the price. Contango can therefore occur when the Participants of the market<\/strong> assume that the spot price of a particular commodity will rise in the future.<\/p>\n\n\n\n

For the investor, contango situations can positive or negative consequences<\/strong> have. Roll losses or profits can therefore occur with long or short positions. Contango does not play a role for day traders due to the short time periods involved.<\/p>\n\n\n\n

Hold a Long position<\/strong> In the case of futures, you can use the difference between the spot price and the futures price in the event of contango. lose<\/strong>. If you Short <\/strong>the opposite occurs. You can calculate the difference between the two prices Win<\/strong>. <\/p>\n\n\n\n

Conclusion: Contango situation explained<\/h2>\n\n\n\n

A contango occurs when the Forward rate above the current spot rate<\/strong> or spot price. The further in the future the cut-off date is, the higher the price. Such higher prices are due to costs incurred, such as storage costs or insurance for holding and storing the raw material.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-48676","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/48676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=48676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}