Annualized % Return
Last updated
Last updated
The Annualized % Return shows the theoretical return a trader would gain if the futures contracts expired a year from now. This return is based on the current basis in futures markets, but projected annually as a point of reference.
The annualized % return indicator can be used to grasp the rate of increase or decrease in price implied by futures traders. The annualized % return is sensitive to price changes and can help highlight periods where short-term price expectations have gone too far in either direction as seen on March 12 and September 3 when projected returns went negative.
