A market condition in which a futures price is lower in the distant delivery months than in the near delivery months. see also contango.
(1) Pricing structure in commodities or foreign exchange trading in which deliveries in the near future have a higher price that those made later on.
A market situation in which prices in succeeding delivery periods are progressively lower than in the nearest delivery period. Also known as an "inverted market." The opposite of backwardation is contango.
Backwardation is the opposite of forwardation: i.e. price of the future is less than the spot price of underlying commodity.... more on: Backwardation
Market situation in which futures prices are lower in each succeeding delivery month. Also known as an inverted market. The opposite of contango.
Market condition where the spot, or current price for a metal is higher than the three-month delivery price. This usually indicates immediate demand is perceived to be stronger than long-term demand. Not considered to be a "normal" market state (See Contango).
This occurs when the bid price exceeds the offer price for a stock. This is a market distortion usually when stock is suspended or a share repurchase scheme.
A futures market where the more distant delivery months trade at a discount to the near term delivery months. Also known as "Inverted Market".
Market scenario when the spot price of a commodity is higher than the forward price. In the precious metal markets this is the result of the monetary interest rate being less than the precious metal lease rate.
see Inverted market. Bear market: a market in which the primary trend is down.
A futures market where further dated delivery months trade at a discount to the near month.
The situation when the cash or spot price of a metal is greater than its forward price. A backwardation occurs when a tight nearby situation exists in a metal. The size of the backwardation is determined by differences between supply/demand factors in the nearby positions compared with the same factors on the forward position. There is no inherent limit to the backwardation. The backwardation is also referred to as the 'back'.
A futures market in which the relationship between two delivery months of the same commodity is abnormal. The opposite of Contango. See also Inverted Market.
A market situation where the spot price trades at a premium to the forward price. Opposite of contango. Unlike the base metals, the price of gold rarely lapses into backwardation although this did occur briefly on November, 28, 1995 in the near month only.
Is the market condition whereby the deferred or more forward delivery months are at a progressive discount to the spot or nearby month. This is also known as an inverted market. This is opposite to a contango or carrying charge market.
Also called inverted market, market situation in which futures prices are progressively lower in the distant delivery months. Indicates supply shortages. Opposite of contango.
When the price for immediate delivery of a commodity is higher than the price of delivery for a future date.
A condition when the front month is higher in price than the back months. Also known as an inverted market.
Term referring to the amount that the spot price exceeds the forward price.
when the price of nearer (typically prompt or spot) crude or another underlying commodity or instrument trades at a premium to the same commodity or instrument traded further forward. Also known as an inverse. see also contango
A market where the price for nearby delivery is higher than for further forward months.
A situation where spot gold price is higher than the gold futures price.
Cash price higher than forward price
A situation when the cash or spot price of a metal stands at a premium over the price of the metal for delivery at a forward date.
A situation in which prices for future deliveries are lower than the spot price
When futures prices are lower in the distant delivery months.
market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This situation may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango.
A relationship in which spot or cash prices are higher than futures (or forward) prices. (Opposite of Contango).
The condition where prompt prices for a commodity are higher than the price for future delivery. This signals that the market is currently experiencing tight conditions and scrambling for prompt supplies. In other words, prices are high now but people believe prices will go down so they carry a low inventory. Contango is the situation with opposite circumstances from backwardation.
LME term used when the price for cash copper commands a premium over the price for copper in three months time. Caused by temporary shortages in spot supplies.
When prices for cash delivery in commodity markets are higher than for forward delivery. The opposite of contango.
Contract pricing structure in which deliveries in the near future have a higher price than those made later on. This occurs when expectations of demand, for the near future, exceed supply at current price level.
Market situation in which futures prices are progressively lower in the distant delivery months. The opposite of a contango, or carrying-charge, market.
Situation that occurs occasionally in futures markets, whereby current commodities or contracts with an earlier maturity date, have a higher value than contracts with a later maturity date.
On futures markets, a market where a commodity is in shortage, causing near contract months to sell at a premium and distant contract months to sell at discount.
The extent to wich a spot price of a foreign currency plus carrying costs exceeds the forward price.
In futures market, when a commodity is in shortage, causing near month contract to sell at a premium and distant month contract to sell at a discount i.e. spot price of the commodity is higher than the forward price.
Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for February is $160.00 per ounce and that for June is $155.00 per ounce, the backwardation for four months against January is $5.00 per ounce. (Backwardation is the opposite of contango). See Inverted Market.
A condition where spot prices exceed forward prices.
1. When the bid price exceeds the offer price for a stock, the stock is in backwardation. For example, where the prices are 512 - 510. This means that the best price at which market makers will sell the stock is less than the best price at which they will buy the stock. This is unusual, since market makers will normally charge a spread, buying stocks for less than the price at which they will sell them. The reason is usually some market distortion, such as a share repurchase scheme by the company. When the price is backward, the touch strip on the SEAQ turns red. See also Choice Price and SEAQ 2. In futures markets, when the future price is less than the cash price. See also Discount and Contango.
A relationship between prices in which the cost of prompt, immediately available supplies exceeds the price of volumes available in the future. Oil markets have been in backwardation for much of 1995 and 1996.
In futures trading, a market condition in which futures prices are gradually lowered in the future months of delivery. Also known as an inverted market. The opposite of contango.
Backwardation, sometimes incorrectly referred to as "backwardization," is the situation where futures contracts closer to expiration trade at higher prices than those that are far from expiration. This is the case of a convenience yield that is greater than the risk free rate. Backwardation is an abnormal situation, and is suggestive of supply insufficiencies in the corresponding (physical) spot market.
Term used to describe an energy market in which the anticipated value of the spot price in the future is lower than the current spot price. When a market is in backwardation, market participants expect the spot price to go down. The reverse situation is described as contango.
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