Sentences with phrase «than the spot price»

If futures prices are higher than spot prices, how can holding stocks not be profitable?

There's no logical reason anyone would sell silver for less than the spot price.

Early this year, the six - month futures price for oil was US$ 20 higher than the spot price.

The discount (futures price lower than spot price) indicates that the market participants are bearish on the underlying asset (BTC).

If you invest in a fund that always buys one - month oil futures contracts, for instance, and that fund has to pay $ 2 more than the spot price for them, the fund will essentially lose $ 2 per barrel each month when they roll their futures contracts.

Another thing to note is that SGX Nifty is a futures contract and hence its movements are more aligned with Nifty Future contract of that specific month rather than Spot price of Nifty.

Between 2015 and 2040, these prices are projected to be 22 percent lower on average than the spot price at Henry Hub forecasted in last year's AEO 2015 Reference case.

If the market for a particular commodity suffers from strong, persistent contango, an ETF that buys futures contracts on that commodity will perform worse than the spot price of the commodity itself.

But why are future contracts higher than the spot price when in contango.

A market in which the futures price is lower than the spot price is said to be in backwardation.

Many investors wonder why the price to buy an ounce of silver bullion — whether it's a coin or bar — is so much higher than the spot price.

Next, since oil for future delivery is currently trading for more than the spot price, a situation traders call «contango», selling into the futures market is a financial win for producers.

Germany gets most of its gas from Russia, went as low as $ 145/1000 cm ($ 4 / MMbtu) or about 20 % less than the spot price at the UK NBP hub.

In mid-February, for instance, December 2017 Brent crude futures were trading above $ 73 — or about 18 % higher than the spot price.

Such a market, where the futures price is higher than the spot price, is said to be in contango.

Backwardation: Backwardation or Normal Backwardation is the opposite market structure from Contango where the price of future contracts are lower than the spot price

The reverse, where the price of a commodity for future delivery is lower than the spot price, or where a far future delivery price is lower than a nearer future delivery, is known as backwardation.

The situation where the price of a commodity for future delivery is higher than the spot price, or where a far future delivery price is higher than a nearer future delivery, is known as contango.

The backwardation contract selling today is lower than the spot price, and its trajectory will take it upward to the spot price when the contract closes.

The Commission of the European Communities, in a report on agricultural commodity speculation, defined backwardation and contango in relation to spot prices: «The futures price may be either higher or lower than the spot price.

A situation in which the futures price (or forward price) of a commodity is higher than the spot price...