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--- 0_public:trading:forward [2024/10/23 21:03] – removed - external edit (Unknown date) 127.0.0.1
+++ 0_public:trading:forward [2025/01/30 22:22] (current) – pointnm
@@ Line 1: / Line 1: @@
+====== Forward ======
+----
+There was no forward business, no futures, nothing.
+===== Forward Curve =====
+The forward curve is simply the <wrap hi>price relationship between different contracts months at a point in time</wrap>. The prices could represent futures contracts or even physical forward contracts calling for delivery of a commodity.
+<wrap hi>When prices of subsequent futures contracts are charted</wrap> a so-called forward curve is created.
+I tend to <wrap hi>use 2nd-3rd to avoid delivery squeezes distorting the long-term charts</wrap>. But, evidently, better to look at particular months where the hedging (and OI) accumulates. But <wrap hi>for a long continuation chart, a 2nd-3rd, typically shows the trend</wrap>.
+function of all futures prices at a specific moment in time[(:ref:jong-introduction-trade-finance)]
+price curve exists of today's spot, 3M, 6M and 12M prices plus all other futures dates[(:ref:jong-introduction-trade-finance)]
+the curve reflects what the market thinks today of a commodity price in the future[(:ref:jong-introduction-trade-finance)]
+“The flattening of the forward curve, on the other hand, is less of an indication that US President Trump’s appeal to OPEC is falling on receptive ears. If this were the case, the prices of contracts with longer maturities in particular would have fallen more sharply.” Carsten Fritsch, commodity analyst at Commerzbank AG, said.((https://archive.ph/dBbgt#selection-8081.0-8086.0)) ((2025))