How do I calculate the carry charge between Aug. copper and Sept copper?

Discussion in 'Commodity Futures' started by mizhael, Jul 7, 2010.

  1. There is a relation between Aug. copper and Sept copper,
    based on carry charges, storage costs, etc.
    how do I figure out that formula?
    Thanks a lot!
  2. It's much complex than you think. There is no formula for getting that spread. All things are considered between two contracts, including: interest rate, supply/demand, storage charge, ... etc. Also the contango or backwardation between months. My suggestion is to trade the month that has the highest liquidity and to forget about the spread issue.
  3. Avoid the "serial" months. :eek: