It is claimed that this new volatility product minimises the negative impact of contango of investing VIX futures by also investing in US treasuries when volatility is low.
22.
The Commission of the European Communities described backwardation and contango in relation to futures prices : " The futures price may be either higher or lower than the spot price.
23.
A crude oil contango occurred again in January 2009, with arbitrageurs storing millions of barrels in tankers to profit from the contango ( see oil-storage trade ).
24.
A crude oil contango occurred again in January 2009, with arbitrageurs storing millions of barrels in tankers to profit from the contango ( see oil-storage trade ).
25.
The opposite market condition to contango is known as backwardation . " A market is'in backwardation'when the futures price is below the spot price for a particular commodity.
26.
The contango should not exceed the cost of carry, because producers and consumers can compare the futures contract price against the spot price plus storage, and choose the better one.
27.
The UBS Bloomberg Constant Maturity Commodity Index ( CMCI ) addresses the issues of contango and backwardation by introducing the concept of constant maturity, which provides diversification across futures contract maturity dates.
28.
In addition, the one-year contango, or the difference between spot prices and forward prices, has narrowed to $ 3 an ounce, from $ 15 a few years ago.
29.
Prices for crude oil delivered in May recently dropped below prices for delivery later this year, a situation traders call " contango " and a prominent sign that prompt demand has waned.
30.
The article claimed that one mechanism involved was a'demand shock'on wheat futures caused by the index funds, resulting in a'contango'wheat market on the Chicago Mercantile Exchange.
