BACKWARDATION


Meaning of BACKWARDATION in English

A 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 .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.