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Funding Rate

It has many meanings in multiple contexts. Generally, it is the interest rate that is charged over a funding interval,...

Advanced Premium Forward

A forward contract/ futures contract that has a flat/ constant contango over the course of its lifespan. Contango occurs when...

Stabilized Contango Contract

A forward contract/ futures contract that has a flat/ constant contango over the course of its lifespan. Contango occurs when...

Constant Contango Forward

A forward contract/ futures contract that has a flat/ constant contango over the course of its lifespan. Contango occurs when...

Benefit of Carry

The benefit of carry arises when the income gained on holding an asset (mainly, interest amounts or dividends) exceeds all...

Negative Carry

A situation that arises when the cost of financing a financial instrument or a physical asset (e.g., a commodity)- that...

Flat Rate Forward

A forward contract/ futures contract that has a flat/ constant contango over the course of its lifespan. Contango occurs when...

Reverse Cash and Carry

A cash and carry transaction that is reversed. It involves the simultaneous sale of a cash market commodity/ instrument for...

Spot Price

The price at which a commodity or a financial instrument (a derivative) for immediate delivery is selling at a specific...

Carrying Charges

The sum of all expenses incurred on holding an asset, literally: storage, insurance and financing costs, subtracted from the income...