backwardation

[US]/ˌbækˈwɔːdˌeɪʃən/
[UK]/ˌbækˈwɑːrdˌeɪʃən/
Frequency: Very High

Translation

n.A situation in which futures contracts are trading at a discount to the current spot price of an underlying asset.

Phrases & Collocations

analyzing backwardation trends

Example Sentences

the market is currently in backwardation, indicating a supply shortage.

backwardation can signal rising demand for commodities.

investors often look for backwardation as a trading opportunity.

backwardation occurs when future prices are lower than spot prices.

understanding backwardation is crucial for futures traders.

backwardation can create a unique pricing structure in the market.

some analysts believe backwardation reflects a bullish market sentiment.

backwardation may lead to higher returns for long positions in commodities.

during periods of backwardation, storage costs can become a critical factor.

backwardation often occurs in markets with limited supply or high demand.

Popular Words

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