Bullish view on the commodity market eg oil or gas. One thinks that
the prices will eventually be up in the future eg 3 months later. The
opposite is known as backwardation market. This is ignoring the
current oil price market ie. Flat price
To trade profitability in a contango market , one will sell M1 and buy
M2. And to close the position will simply reverse it with buying M1
and sell M2.
This is known as a time spread.
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