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:
“The basic thing nobody asks is why do people take drugs of any sort?... Why do we have these accessories to normal living to live? I mean, is there something wrong with society that’s making us so pressurized, that we cannot live without guarding ourselves against it?”
—John Lennon (1940–1980)
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