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:
“Nothing is poetical if plain daylight is not poetical; and no monster should amaze us if the normal man does not amaze.”
—Gilbert Keith Chesterton (1874–1936)
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