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.
Read more about this topic: Normal Backwardation
Famous quotes containing the word normal:
“Love brings to light the lofty and hidden characteristics of the lover—what is rare and exceptional in him: to that extent it can easily be deceptive with respect to what is normal in him.”
—Friedrich Nietzsche (1844–1900)
Related Phrases
Related Words