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Forward


There was no forward business, no futures, nothing.

Forward Curve

The forward curve is simply the price relationship between different contracts months at a point in time. The prices could represent futures contracts or even physical forward contracts calling for delivery of a commodity.

When prices of subsequent futures contracts are charted a so-called forward curve is created.

I tend to use 2nd-3rd to avoid delivery squeezes distorting the long-term charts. But, evidently, better to look at particular months where the hedging (and OI) accumulates. But for a long continuation chart, a 2nd-3rd, typically shows the trend.

function of all futures prices at a specific moment in time1)

price curve exists of today's spot, 3M, 6M and 12M prices plus all other futures dates2)

the curve reflects what the market thinks today of a commodity price in the future3)


1), 2), 3) An introduction to trade and commodity finance
0_public/trading/forward.1729717417.txt.gz · Last modified: 2024/10/23 21:03 by pointnm