Conversely, backwardation exists when futures costs rise higher than the spot rate, favoring prospective buyers who anticipate the currency’s worth to enhance after a while. The pricing of forwards is derived from spot rates adjusted with the interest price differential between the two currencies. Mathematically, the forward level FFF could https://irs-approvedgold29627.losblogos.com/36963228/the-best-side-of-futures-contracts