>>20872139You could also do this on other things in contango like equity futures as long as they don't rip too hard. So if you short a contract of /NQ expiring 3 months from now, that price is higher than the spot price. Assuming there's no move up then you ride it down to convergence with the spot price and buy to close. Or you could roll for a credit.
That also means there's basically a daily cost baked in to longing contracts that have contango. Similar to theta on options.
And for contracts in backwardation it's the opposite, if I longed a /CL contract expiring 3 months from now I'll ride that lower price up to spot price as long as it doesn't dump too hard.
