Commodity Trading Glossary

The concepts behind the toolkit

Plain-English explainers for the futures-market ideas Commodity Hub's tools are built around — each one links to the live tool that shows it in action.

Contango vs. Backwardation, Explained

What the two shapes of a futures curve mean, why the curve shifts between them, and how roll yield affects anyone holding a position through expiry.

What Is the COT Report?

How the CFTC's weekly Commitment of Traders report breaks down commercial and speculative positioning, and why crowded positioning is a warning sign.

What Is a Crack Spread?

How the crack spread isolates a refiner's margin between crude oil and its products, and what widens or narrows it.

Commodity Seasonality, Explained

Why commodities like natural gas, gasoline, grains, and livestock follow recurring calendar-driven price patterns — and how to use that without overfitting it.

What Is Roll Yield?

The gain or loss baked into rolling a futures position forward — negative in contango, positive in backwardation — and why it drives the gap between commodity funds and spot prices.

What Is Open Interest?

The count of futures contracts still outstanding, how it differs from volume, and how to read it alongside price to tell new positioning from position-closing.