Editing Futures contract (section)

===Contango, backwardation, normal and inverted markets===
The situation where the price of a commodity for future delivery is higher than the expected [[spot price]] is known as [[contango]]. Markets are said to be normal when futures prices are above the current spot price and far-dated futures are priced above near-dated futures. The reverse, where the price of a commodity for future delivery is lower than the expected spot price is known as [[backwardation]].  Similarly, markets are said to be inverted when futures prices are below the current spot price and far-dated futures are priced below near-dated futures.