Definition. The Futures Term Structure is a graphical representation of the pricing for futures contracts expiring at increasingly distant dates into the future.

Interpretation. An upwards slope, the most common state of the graph, indicates a premium must be paid to purchase exposure, or delivery, of an asset in the future. A downwards slope indicates a discounted rate on delivery of an asset in the future, and trends and dislocations within the graph can paint a picture of supply, demand, and liquidity for futures contracts expiring on different dates.