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Contango: Future Price > Spot Price

Backwardation: Future Price < Spot Price

Roll Yield:
Contango – Negative Yield Roll
Backwardation – Positive Yield Roll

When treasuries are pledged as collateral for a commodities futures trade, the yield on the treasuries is called collateral yield.

Unlike equity index funds, the commodity index strategies are ACTIVE since future contracts need to be rolled.

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