What you will learn
- Explain how supply, demand and inventories influence spot prices.
- Interpret contango and backwardation and estimate roll effects.
- Compare the margin, tracking and cost features of commodity instruments.
Before you begin
Basic arithmetic with percentages. No prior knowledge of futures or commodities is assumed.
Full lesson list
All lessons are freely available. No enrollment or payment is required.
Spot Prices and Physical Drivers
- Define a spot price in terms of grade, location and delivery.
- Show how low inventories and slow demand response amplify price moves.
Futures Curves and Roll Yield
- Read a futures curve as contango or backwardation.
- Estimate the roll effect on a position held through successive contracts.
Commodity Instruments and Exposures
- Compare physical, futures, fund and producer-share exposures.
- Calculate margin leverage and fund tracking drag.