August 27, 2019

Contango Vs. Backwardation…What Is the Difference?

Contango and backwardation are terms used to define the structure of the a time structure curve.  For example, the yield curve, the VIX curve or a commodity such as Gold or even Corn.  When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.

Follow me on Twitter @MikeShorrCbot

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

Read Similar Articles

https://www.prospertrading.com/charlie-moon-qa-082726/Charlie Moon’s Day Trading Playbook
August 28, 2026

Charlie Moon’s Day Trading Playbook

Charlie Moon went live with his trading room to walk through the exact playbook he uses every single day. This is an inside look at how he reads the market, spots his setups, and manages trades in real time.

Read Article
https://www.prospertrading.com/charlie-moons-pltr-on-schwab-080326/Charlie Moon’s PLTR Trade on Schwab Network
August 3, 2026

Charlie Moon’s PLTR Trade on Schwab Network

Charlie Moon joined Schwab Network to break down a non-directional options trade on Palantir heading into earnings and share his big picture read on what the market could be setting up for in August.

Read Article
https://www.prospertrading.com/charlie-moons-big-3-072726/Charlie Moon’s Big 3: AAPL, INTC, and CRM
July 27, 2026

Charlie Moon’s Big 3: AAPL, INTC, and CRM

Charlie Moon joined Schwab Network’s Big 3 segment to break down three trades spanning both sides of the AI trade. One name lying in wait, one getting punished despite strong numbers, and one software play that could quietly be setting up for a big move.

Read Article

Read Similar Articles

July 15, 2026

The Fed, Oil, and What Earnings Season Really Means

Scott Bauer joined the IBKR Podcast this week to break down what moved markets last week and what investors need to watch heading into the next stretch of earnings season. From lagging inflation data to big tech CapEx concerns, Scott did not hold back.

Read Article
July 5, 2026

The Week Ahead: Happy 250

The Dow rose more than ​1% to a record closing high on Thursday ahead of the long holiday weekend as a softer-than-expected U.S. ‌jobs report eased worries about interest rate hikes, while another sharp drop in chipmaker stocks weighed on the Nasdaq. The second half of 2026 kicked off this week much the same as […]

Read Article
June 28, 2026

The Week Ahead: Darn Inflation

A renewed sell-off in technology stocks grabbed headlines this week. The Nasdaq index fell 4.5%, closing lower 5 days in a row, led by a large 5.5% decline in the so-called Magnificent 7 mega cap names. Meanwhile, the post IPO exuberance around SpaceX appears to be fading, with shares now down 25% from their peak. […]

Read Article