its not too hard to remember, but the way I think of it is: Future > Spot prices are in tango, in sync - - contango, as I usually think of prices as going up in the future Future < Spot well thats backwards (backwardation). the futures price is below the current spot price, thats bananas! as dave heatherington says, it is bananas/backwards as the price of a banana today is worth more than the same banana in 6 months as it will be rotten . . .
phillip.platt, i thought this would be funny/useful it takes two to (con)tango, so the joy in your “futures” are “higher” than what it is now as you’re dancing in the "spot"light
LOL brilliant
All I think of is oil price, tankers, and Somali pirates and it just sticks.
How do you guys remember FANDANGO???
I buy AMC 25 tickets from there - so I really dont have to remember that. It’s in my fvt links. Hope that helps.
i just think about USO contango
SkipE99 Wrote: ------------------------------------------------------- > How do you guys remember FANDANGO??? I just think of how I don’t need to watch a movie before I get it on with your mom, SkipE99.
annnnnnnnd… we digress
I remember it by thinking “F**king Stupid Contango” F-S-C ----> Future - Spot - Contango From there I just remember that since the F comes first, it’s great than the S. I picture it like a ratio, with the Future over the Spot. That pretty much does it.
I remember it this way. Think of the less than sign as an arrow. For backwardation the arrow ‘points’ backward. Future < Spot