Normal Backwardation Vs. Backwardation
The term backwardation, when used without the qualifier "normal", can be somewhat ambiguous. Although sometimes used as a synonym for normal backwardation (where a futures contract price is lower than the expected spot price at contract maturity), it may also refer to the situation where a futures contract price is merely lower than the current spot price.
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Famous quotes containing the word normal:
“Marriages will survive despite enormous strains. A lover will ask, “Is he happy? Can he still love her?” They don’t realise that’s not the point, it’s all the normal things they do together—going to the supermarket, choosing wallpaper, doing things with the children.”
—Carol Clewlow (b. 1947)
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