CONTANGO = when the spot price of an asset is less than the future price of an asset.
All commodity exchange trade products as well as long volatility ETP's must roll into the next month's futures contract rather than taking physical delivery.
When the futures are in contango it’s bad news for the price of the ETP’s holding them. They are buying futures when they are higher on the curve, at a more expensive price, and selling them when they have decayed to a lower price. Buying high and selling low—not a profitable practice.
You lose all your money, little by little, month after month!
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@originalworks
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The @OriginalWorks bot has determined this post by @cheapogroovo to be original material and upvoted(1.5%) it!
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Nice, you got a 26.0% @glitterbooster upgoat, thanks to @cheapogroovo
It consists of $0.37 vote and $0.01 curation
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