Re: [ANN] Lykke - Semi-decentralized Exchange on the Blockchain
Guys that is easily explained and a real validation of the Lykke project.
The futures price can be above or below the spot price, when its above the spot price it is what in finance speak we call contango.
https://en.wikipedia.org/wiki/Contango
When an asset is in Contango it usually indicates the market view that the spot price (which is LKK in this case) in the future will move up.
Putting my finance & investment background to good use
But how can it be higher than LKK? That doesn't make any sense.
I have no idea tbh.. ;-)
The futures price can be above or below the spot price, when its above the spot price it is what in finance speak we call contango.
https://en.wikipedia.org/wiki/Contango
When an asset is in Contango it usually indicates the market view that the spot price (which is LKK in this case) in the future will move up.
Putting my finance & investment background to good use
@mtnsaa: The LKK1Y-price results out of real demand. ;-)
But how can it be higher than LKK? That doesn't make any sense.
I have no idea tbh.. ;-)
Interesting! Didn't know "Contango". But I'm not so sure that applies here because if I get it right, Contango seems to be a situation that happens when it's about raw-material with certain costs (carrying, storage, loss) what is not the case for LKK.