Why is the Z/H ES inverted?

[fortunatti]

Why is the Z/H ES inverted?

 

[jeb9999]

Is "inverted" a new futures market term ?

In futures you have contango and backwardation.

Current cost of carry for the last 2 years has kept the index futures in backwardation.

Read all the details at http://indexarb.com/

 

[intradaybill]

Quote from jeb9999:

Read all the details at http://indexarb.com/

Thanks for the link. Good website, a lots of info there.

 

[nazzdack]

Quote from fortunatti:
Why....

Because the dividend rate is greater than the short-term interest rate. If the futures were not "inverted" the way they are, you could earn "free money" on a hedged portfolio.