Trading Basics
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
Other Trading Basics
Collateral
The resources put up by the trader to enter a trade.
Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.
Convertible Stocks
A loan that the owner can convert to ordinary shares in that company, given a set of conditions defined in the original loan.
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
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