Contango is a term used in the finance world to describe the relationship between the current and future price of a commodity or stock. When an asset is in contango, it means that its future price is higher than its current price.

But why does contango happen? It’s mainly due to the principles of supply and demand. When there is a high demand for an asset, its future price tends to be higher because people are willing to pay more to secure it in the future.

So, what does this mean for traders? In a contango market, buying an asset means paying a premium, and in order to make a profit, the future price would need to significantly increase.

We hope this short [What is Contango?] video helped clarify the concept of contango. Don’t forget to hit the like button if you found this information valuable, share this with your fellow traders, and subscribe to our BeachBum Trading channel for more informative videos. Happy trading! Thank you for watching.

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