Backwardation

Filed Under: b by
Backwardation
Opposite of contango. Circumstances existing in the market wherein futures prices are lesser in distant delivery months when compared with nearest delivery months. Happens when storage costs for the product until delivery date are reduced from current price.

Recommended for you:

  1. Nearby Futures Contract
  2. Importance of Futures Market
  3. Normal Backwardation Theory
  4. Delivery Price
Home / Glossary / b / Backwardation