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.

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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.

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Funder Trading Review – Best Prop Trading Firm in 2024?

If you are actively trading in the stock market in 2024, chances are you’ve heard a new buzzword flying around: Prop Trading, short for Proprietary Trading. Whether you’ve tried prop trading or not – or have even heard of it at all – its popularity is quickly growing because it provides everyday traders with a […]

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September 26, 2022

Coach’s Roundtable: FOMC Fallout & Resilient Market Sectors

Every week, the coaches at Prosper Trading Academy offer their insight on some of the most challenging questions covering recent stock market developments, trading tips, and relevant news stories. This week, Scott Bauer, Charlie Moon, and Mike Shorr give their thoughts on why certain stock market sectors are staying resilient amid the FOMC fallout, and […]

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volatility
September 20, 2022

What Does Volatility Mean?

Defining Volatility Volatility signifies a security or index price’s degree of variation over time, and is typically associated with price swings in either direction. Volatility often indicates how much risk or uncertainty is tied to the size of changes in an asset’s value. Higher volatility means more risk (the asset’s price can change drastically over […]

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May 8, 2024

What Is Delta In Options Trading?

Understanding the Delta of an option is crucial for both new and seasoned traders. It’s one of five specific calculations called “Greeks,” which help measure specific factors that could influence the price of an options contract. Delta is a metric that helps you gauge how much the value of an option contract is expected to […]

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January 4, 2024

Funder Trading Review – Best Prop Trading Firm in 2024?

If you are actively trading in the stock market in 2024, chances are you’ve heard a new buzzword flying around: Prop Trading, short for Proprietary Trading. Whether you’ve tried prop trading or not – or have even heard of it at all – its popularity is quickly growing because it provides everyday traders with a […]

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September 26, 2022

Coach’s Roundtable: FOMC Fallout & Resilient Market Sectors

Every week, the coaches at Prosper Trading Academy offer their insight on some of the most challenging questions covering recent stock market developments, trading tips, and relevant news stories. This week, Scott Bauer, Charlie Moon, and Mike Shorr give their thoughts on why certain stock market sectors are staying resilient amid the FOMC fallout, and […]

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