Definition

Futures Term Structure

Meaning ⎊ The relationship between futures contract prices and their respective expiration dates, often showing contango or backwardation.
Greeks.liveMarch 24, 2026

Futures Term Structure

The futures term structure, often visualized as a curve, represents the relationship between the prices of futures contracts with different expiration dates for the same underlying asset. In a normal market, this curve is upward sloping, known as contango, where prices for longer-dated contracts are higher than spot prices.

When the curve is downward sloping, it is called backwardation, typically indicating high demand for the spot asset relative to future supply. Understanding the term structure is essential for roll-yield strategies, where traders profit from the price difference between contracts as they move closer to expiration.

Crypto markets often exhibit extreme term structures due to the high volatility and unique incentive structures of the underlying protocols.

Golden Cross
Cash and Carry Strategy
Convergence
Spot-Futures Arbitrage
Perpetual Futures Basis
Implied Volatility Term Structure
Synthetic Shorting
Bearish Crossover

Glossary

Term Structure

Asset ⎊ The term structure, within cryptocurrency derivatives, describes the relationship between an asset's price and its expected future value, often visualized across different maturities.