MONEY GLOBE XFutures Pro · Lesson 1
Basis, contango and backwardation
What the futures curve tells you
Professional - Gold & Platinum
In this lesson
Calculate the basis and its annualised rate, and read contango and backwardation.
Key takeaways
- Basis = futures price − spot price; annualise it to compare expiries.
- Contango (futures above spot) is normal; backwardation (below) signals stress or heavy shorting.
- A very high annualised basis shows crowded, leveraged longs.
- Watch the basis together with funding rates and open interest.
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Next lesson: Funding and cash-and-carry
Educational information only - not financial advice.