Contango & Backwardation

swarnendupathak
Finance Junkie
Posts: 119
Joined: Mon Sep 17, 2012 11:06 am

Contango & Backwardation

Postby swarnendupathak » Wed Nov 07, 2012 3:08 pm

Hi all,
Is there is any difference between contango with normal Contango & backwardation with normal backwardation????

Swarnendu

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balajismz
Finance Junkie
Posts: 63
Joined: Mon Nov 05, 2012 9:13 am

Re: Contango & Backwardation

Postby balajismz » Wed Nov 07, 2012 3:21 pm

Yes, In Contango and Backwardation you are comparing the spot price and forward price where are in case of Normal Contango and Backwardation, you are comparing Expected spot price and forward price.


Balaji

swarnendupathak
Finance Junkie
Posts: 119
Joined: Mon Sep 17, 2012 11:06 am

Re: Contango & Backwardation

Postby swarnendupathak » Wed Nov 07, 2012 3:25 pm

Thanks bala..

Swarnendu

content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

Re: Contango & Backwardation

Postby content.pristine » Fri Nov 09, 2012 12:30 pm

Perfect answer Balaji
8-)


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