**Understanding Futures Prices**
When it comes to the derivatives market, futures prices often deviate from spot prices 📊. This discrepancy creates a unique phenomenon known as the Term Structure.
**The Normal State: Contango**
In a healthy financial market, future prices are typically higher than present prices 💸. This is because the futures price includes additional costs such as:
**Cost of Carry**
Storage fees
These extra expenses justify the higher price of future contracts.
**But What Does It Mean?**
A contango curve with futures prices above spot prices indicates a normal market state 📈. Smart Money anticipates a steady, long-term trend in the asset's value, making future investments more valuable than current ones.
**Spotlight on Term Structure**
The Term Structure is a crucial indicator of market sentiment and expectations 🔍. By analyzing this curve, you can gauge what Smart Money truly expects for the future.
$LUNA, $JUV , $SOMI .



