Options and FuturesNational Futures Association (NFA) European-Style Options Buy On Opening At-the-Money Option Cross-Hedging Offset
Inverted Market
A term frequently used in the finance world is "contango," which refers to a situation in the futures market where the price of a commodity for delivery in the near future is higher than the price for delivery in a further future. This is typically seen in markets where there is a high demand for the commodity in the present, but an expected decrease in demand in the future. Essentially, it means the market is anticipating a decline in price over time. This concept can be complex, but understanding it is crucial for anyone involved in trading commodities.
Related terms
Understand the meaning and definition of National Futures Association (NFA) in the context of stock market, trading, and investments.
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