What Contango Is (and Why Every Investor Should Know About It)

Investors run into new concepts all the time, and to be successful with your investments, you have to understand all the factors that can affect your portfolio and its holdings. Those who invest primarily in stocks typically know the ins and outs of the businesses in which they own shares along with the risks they face.

Investing in futures contracts-- or in the exchange-traded funds that themselves have holdings in futures contracts -- can expose you to some risks that you've never heard of before.