Backwardation
Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and that for June is $355.
Backwardation occurs because, as a commodity or financial instrument is held for a longer period of time, it carries charges (such as storage charges), interest expenses, and insurance that have to be paid.
There are several factors that may lead to an incident of backwardation with a given set of futures. One has to do with naturally occurring events, such as disasters involving weather.
Backwardation - The expectation that futures prices will rise over the life of a contract.
Barrier Option - When an options payoff depends the underlying asset reaching a certain price ...
Backwardation: A situation in which prices for future deliveries are lower than the spot price. Also known as an Inverted market.
Bear Market: A market in which the primary trend over a period of time is down.
Backwardation (see also Contango) - A term often used in commodities or futures markets to refer to markets where shorter-dated contracts trade at a higher price than longer-dated contracts.
Backwardation -- Market situation in which futures prices are lower in each succeeding delivery month. Also known as an inverted market. The opposite of contango.
Bactericides - Materials that kill bacteria, such as silver salts.
Backwardation: A condition when the front month is higher in price than the back months. Also known as an inverted market.
Basis: The difference between spot (cash) prices and the futures contract price.
BACKWARDATION A market situation where the spot price trades at a premium to the forward price. Opposite of contango.
Backwardation - When futures price is below spot price and is converging upwards towards the spot price as expiration approaches.
Basis -Difference between spot price and the nearest futures price. Read the tutorial on Basis.
Backwardation
The situation where an investor on the Forward Market postpones a bear position to the next fortnight period, speculating on a continuous falling of the prices: delay of delivery of sold securities until the next settlement day.
Backwardation
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month.
Backwardation
When the current price (spot rate) of commodity futures is higher than the forward rate. Roll returns accrue when about-to-expire futures contracts are converted (rolled over) into longer-term contracts.
A state of backwardation occurs when the current price of a particular commodity is higher than the forward price (the price agreed on by seller and buyer of an asset).
backwardation Theory that suggests futures contracts nearer to expiration trade at premium... bad debt Accounts receivable that will likely remain uncollectable and will be written...
Backwardation 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.
Silver futures have entered a very severe form of a rare condition known as "backwardation.
Spreads can be filtered by virtue of seasonality, backwardation, and carrying charge differentials, in addition to any other filters you might be using in your trading.
Spreads can be used to create partial futures positions.
The UBS Bloomberg Constant Maturity Commodity Index (CMCI) addresses the issues of contango and backwardation by introducing the concept of constant maturity, which provides diversification across futures contract maturity dates.
Spread
A term referring to the difference in two prices. The contango or backwardation between two prompt dates or the difference between the bid and offer price.
Free LME Market Data ...
A market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery months; opposite of Backwardation.
Contract
A term of reference describing a unit of trading for a commodity future or option.
If the price of a futures contract is higher than the price of a contract with the same terms that expires at a later date, the relationship between the two is called backwardation.
situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery month. The discrepancy in prices is often a result of the costs of storing and insuring the underlying commodity. Opposite of backwardation.
It refers to the trading in which the settlement is postponed to the next account period on payment of contango charges (known as ‘vyaj badla') in which the buyer pays interest on borrowed funds or the backwardation charges (a.k.
 See also: Market, Future, Futures, Contract, Exchange
  
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