FAQs

Concerning contango and backwardation, I have seen that several people have doubts. When a spread is above zero, is it in contango or backwardation? It depends. It depends on how that spread…

Answering this question gives me the opportunity to make some clarifications in addition to emphasising the importance of the underlying in spread trading. Generally, a spread is constructed with the nearest

A clarification about the construction of a spread. You should not confuse the way a spread is constructed with what you do with that spread. The ZCK23-ZCN23 spread is constructed by buying…