Use "contango" in a sentence
contango example sentences
contango
1. Normally, the nearby months are cheaper than the remote ones, and that relationship is called a contango market
2. When the front month trades higher than the current month, this market condition is known as contango
3. The market is also in contango when the price of the front month is higher than the spot market, and also when late delivery months are higher than near delivery months
4. I include an example of the CME crude oil contract in contango in Table 9-2
5. Contango is thus a bullish indicator, showing that the market expects the price of the futures contract to increase steadily into the future
6. When the markets moved to contango (prices for future months were higher than the current month), MG found itself unable to hedge the long-term contracts and was forced to meet the obligations on those long-term contracts
7. The oil futures will either trade in contango or backwardation
8. Contango is an upward sloping curve in which the contracts further away from the current month are trading at a higher price
9. When a contract expires and a typical oil ETF has to buy in to the new front month, it could result in paying a higher price on the basis of the contango situation
10. Backwardation is the exact opposite of contango and occurs when the future contract prices are less than the current price
11. Most often VIX futures exhibit a contango (upward-sloping) relationship, where long-term maturities trade at higher prices than short-term maturities
12. A typical VIX contango structure, for futures during August 2012, is shown in Figure 25-8
13. Figure 25-10 shows the VIX moving from contango to backward during the financial crisis in the latter half of 2008
14. Suppose that VIX futures are in a normal contango relationship and that a trader believes that there is likely to be a rise in the value of the VIX in the near future
15. Even if both futures contracts lose value as time passes (a contango term structure) or gain value as time passes (a backward term structure), their relationship will remain constant
16. Under these conditions, if the shape of the term structure remains unchanged, the purchase of a long-term futures contract and the sale of a short-term future contract will be profitable in a contango market, and the purchase of a short-term futures contract and the sale of a long-term future contract will be profitable in a backward market
17. Examples of this are shown for a contango market in Figure 25-13
18. Figure 25-14 a futures spread when the term structure moves from contango toward backward
19. Figure 25-15 a futures spread when the term structure moves from backward toward contango
20. In this case, the roll return for gold was typically negative (reflecting contango) and exactly offset positive cash income
21. Conversely, when the term structure is upward sloping (“in contango”), roll return is negative [5]
22. However, if consumers have greater hedging needs than producers, the futures price curve can slope upwards (be in contango)
23. Roll return was only mildly negative over long time periods but contributed to 8% annual losses in the 2000s due to the prevalence of contango (akin to negative carry), which offset most of the 10% annual spot price increases
24. The general shift of oil term structure from backwardation to contango has been the main reason, but the increasing role of institutional commodity index investors and the temporary market impact of index investors rolling their contracts in synchrony (i
25. , natural gas, aluminum, and corn tend to have term structures in contango and low average returns)
26. Several empirical studies show that backwardated commodities tend to have higher subsequent returns than commodities in contango
