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Normal backwardation - Wikipedia, the free encyclopedia
Formally, backwardation means a downward sloping forward curve (as in an inverted yield curve). A backwardation starts when the difference between the forward price and the spot price is less than t...
en.wikipedia.org/wiki/Normal_backwardation |
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Contango - Wikipedia, the free encyclopedia
Contango is a term used in the futures market to describe an upward sloping forward curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed"...
en.wikipedia.org/wiki/Contango |
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backwardation - definition of backwardation - A market condition in which a futures price is lower in the distant delivery months than in the near delivery months. ... backwardation in the news...
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Bloomberg reports that China Shouldn't Get Fooled by Soybean Futures from April 2008. Everything it says about backwardation in Chinese futures markets now applies to US soybean, sugar, and copper futures.
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Some among the chattering classes would have us believe the spike was foretold by gold tipping into what they dubbed "backwardation." Well, not gold per se. Rather, gold forward rates.
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Already there was a slight backwardation in gold at the expiry of a previous active contract month, but it never spilled over to the next active contract month, as it does now: backwardation in the December contract is spilling over to the February contract which at last reading was 0.36%. Silver is also in...
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that for a negative one, backwardation. Contango implies the existence of a healthy supply of the commodity in the warehouses available for immediate delivery, while backwardation implies shortages and conjures up the scraping of the bottom of the barrel.
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Backwardation is a market condition where spot prices exceed forward prices. Contango is the opposite condition, where forward prices exceed spot prices. The terms are most commonly used in oil markets but are also applied in certain commodities and energies markets. ... Backwardation can indicate an immediate shortage.
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A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. balance sheet Also called the statement of financial condition, a summary of the assets, liabilities, and owners' equity ... search business terms ... Enter a Business Term in the Box Below:
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I know that it's a little confusing to describe strategy 3 this way, which is why texts that are trying to explain contango and backwardation usually do it by discussing strategy 3 directly rather than the sum of strategy 1 and 2. But analyzing it the way I have done here clarifies a key point that is often missed in...
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