Backwardation
Definition
Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and that for June is $355.00 per ounce, the backwardation for five months against January is $5.00 per ounce. (Backwardation is the opposite of contango ). See Inverted Market.
Related Terms Other terms related to 'Backwardation' starting with the letter 'B' Back Office, Bear Spread, Broker, Bunched Order, Board Order Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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