Discussion in 'Index Futures' started by fortunatti, Dec 10, 2010.
Why is the Z/H ES inverted?
Is "inverted" a new futures market term ?
In futures you have contango and backwardation.
Current cost of carry for the last 2 years has kept the index futures in backwardation.
Read all the details at http://indexarb.com/
Thanks for the link. Good website, a lots of info there.
Because the dividend rate is greater than the short-term interest rate. If the futures were not "inverted" the way they are, you could earn "free money" on a hedged portfolio.
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