Backwardation definition
Backwardation means a market condition in which futures prices for a product are lower in future delivery months, therefore resulting in storage of such product for a period of time being potentially less beneficial than immediate sale of such product;
Backwardation means that the bid price of a stock is above the offered price;
Backwardation means where the price of a forward or futures contract is trading below the spot price;
More Definitions of Backwardation
Backwardation which means that the prices are lower in the distant delivery months than in the nearer delivery months, the sale of the October contract would take place at a price that is higher than the price of the November contract, thereby creating a “roll yield.” While some of the contracts the COMB Fund may hold have historically exhibited consistent periods of backwardation, backwardation may not exist at all times. Moreover, certain commodities, such as gold, have historically traded in “contango” markets. Contango markets are those in which the prices of contracts are higher in the distant delivery months than in the nearer delivery months. The absence of backwardation in a particular commodity
Backwardation which means that the prices are lower in the distant delivery months than in the nearer delivery months, the sale of the October contract would take place at a price that is higher than the price of the November contract, thereby