futuurikäyrä

The term "futuurikäyrä" translates to "futures curve" in English and refers to a graphical representation of the prices of futures contracts for a given commodity or financial instrument across different delivery dates. Typically, the horizontal axis represents the time to delivery (e.g., months or years), and the vertical axis represents the price of the futures contract.

The shape of the futures curve provides insights into market expectations about future supply and demand, storage costs, interest rates, and other factors influencing prices. A futures curve that slopes upward is known as a contango market, indicating that futures prices are higher for later delivery dates than for earlier ones. This often suggests that the market anticipates higher prices in the future, possibly due to expected increases in demand, supply shortages, or rising storage costs.

Conversely, a futures curve that slopes downward is known as a backwardation market. In this scenario, futures prices are lower for later delivery dates than for earlier ones. Backwardation can signal an expectation of lower prices in the future, perhaps due to anticipated increases in supply, decreasing demand, or a current shortage driving up spot prices.

The futures curve is a dynamic tool used by traders, investors, and analysts to understand market sentiment, make trading decisions, and manage risk. Its shape can change rapidly based on new information and market developments. Different markets, such as oil, natural gas, agricultural products, and financial instruments, will have their own unique futures curves, reflecting the specific supply and demand dynamics of each.