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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“Insecurity, commonly regarded as a weakness in normal people, is the basic tool of the actor’s trade.”
—Miranda Richardson (b. 1958)
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