Concept about price return of futures contract

[cml]

Hi all, I would like to understand the relationship between price return and the term structure of futures conteact. I understand that contango is associated with negative roll return while positive roll return with backwardation. How is the price return related to contango and backwardation ? Is it an inverse relationship? Would there be any example to have positive price return and positive roll return on future contract with backwardation curve? Thanks.

 

[Nicole Seaman]

Hi all, I would like to understand the relationship between price return and the term structure of futures conteact. I understand that contango is associated with negative roll return while positive roll return with backwardation. How is the price return related to contango and backwardation ? Is it an inverse relationship? Would there be any example to have positive price return and positive roll return on future contract with backwardation curve? Thanks.

Hello @cml

There is a great deal of information in the forum regarding these concepts. If you use our search and tag functions (I've added tags above), you will find that there are many examples and discussions. This not only prevents you from having to wait for someone to answer your questions, but it also minimizes the posts in the forum that have the same repeated information. We are always happy to answer questions if you cannot find what you are looking for but appreciate you searching the forum first since there are many active discussions regarding these concepts.