Futures Contracts, Pricing, and Basis

Futures contract pages explain standardized exposure, price formation, basis behavior, and the position language traders use around delivery months.

In this section

• Basis, Delivery, and Convenience Yield
  Contango, backwardation, convenience yield, delivery month, and wide-basis terms used in futures basis analysis.
  • Contango and Backwardation: Market Conditions in Futures Trading
    Contango and Backwardation refer to market conditions where futures prices are higher or lower than spot prices, respectively. These terms describe the shape of the futures curve and are crucial concepts in understanding commodity markets.
  • Convenience Yield: The Non-Monetary Advantage of Holding an Asset
    Exploring the concept of convenience yield, its historical context, types, key events, mathematical models, importance, and applications in various fields.
  • Spot Delivery Month: Nearest Month for Commodity Delivery
    The nearest month among currently traded contracts in which a commodity can be delivered, such as February for contracts in late January.
  • Wide Basis: Definition, Mechanisms, and Examples in Futures Market
    Understanding the concept of a wide basis in the futures market, including its definition, functioning, and illustrative examples. Explore how a significant difference between spot and futures prices impacts trading.
• Futures Contracts and Pricing
  Commodity futures, futures contracts, futures price, futures rate, trading, and outright position terms.
  • Commodity Futures Contract: Comprehensive Definition, Investment Strategies, and Trading Insights
    Understand what a commodity futures contract is, how it works, and its role in investment and trading. Learn about different strategies, examples, and trading insights to navigate the commodity futures market effectively.
  • Commodity Futures: Contracts for Future Commodity Transactions
    Commodity Futures are contracts to buy or sell a commodity at a predetermined price on a specified future date, providing a mechanism for managing price risk in commodity markets.
  • Futures Price: Understanding the Agreed-Upon Price for Future Delivery of Assets
    The Futures Price is the agreed price for the future delivery of an asset, and it plays a crucial role in futures contracts which are standardized and exchanged in financial markets.
  • Futures Rate
    Learn what futures rate means as the rate implied by pricing in a futures market, especially interest-rate and commodity futures contexts.
  • Futures Trading Explained: An In-Depth Guide to Financial Contracts
    Discover the fundamentals of futures trading, how these financial contracts work, their types, historical context, and practical applications in modern finance.
  • Outright Futures Position: Definition, Mechanism, and Examples
    An in-depth exploration of outright futures positions, their workings, special considerations, and practical examples in the financial markets.