**Understanding Futures Prices**

When it comes to the derivatives market, futures prices often deviate from spot prices šŸ“Š. 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 šŸ’ø. 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 šŸ“ˆ. 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 šŸ”. By analyzing this curve, you can gauge what Smart Money truly expects for the future.

$LUNA, $JUV , $SOMI .