Examples of 'backwardation' in a sentence
Meaning of "backwardation"
backwardation: A term used in finance and trading to describe a scenario where the spot price of a commodity is higher than the futures price. This situation typically indicates a short-term shortage in the commodity's supply
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- In full normal backwardation: the situation in a futures market where the price for future delivery of a commodity (the forward price) is lower than the price for immediate delivery (the spot price) or nearer delivery, generally arising from a near-term shortage of the commodity.
- The situation in a stock market where the offer price for stock is lower than the bid price.
- In the London Stock Exchange: a fee paid by a seller on settlement day either to the buyer or to a third party who lends stock, when the seller wishes to defer settlement until the next settlement day.
How to use "backwardation" in a sentence
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backwardation
Backwardation spot prices are higher than forward prices.
Curve play from contango to backwardation.
Backwardation is the opposite phenomenon of contango.
That does not mean gold is in backwardation.
The cure of backwardation is more backwardation.
This will be permanent gold backwardation.
Backwardation and contango are terms used in the futures markets.
Commodity futures curves are said to be either in contango or backwardation.
Backwardation is the opposite of forwardation.
Both gold and silver are in backwardation.
Permanent gold backwardation as a threat to society has been temporarily removed.
The market is said to be inverted or in backwardation.
Backwardation is occurring more often.
This is largely to blame for the ongoing backwardation phase.
The meaning of gold backwardation is that trust in future delivery is scarce.
See also
This is the opposite of backwardation.
Yet here are backwardation conditions being imposed from the money side.
This event is known as backwardation.
Backwardation indicates that the forward or futures curve is sloping down.
What is contango and backwardation.
Normal backwardation theory.
So it moved it back into backwardation.
Backwardation is not the normal situation and suggests supply shortages in the spot markets.
One theory of backwardation.
VIX futures usually find themselves in a state of contango or backwardation.
The graph above reflects the backwardation that occurred in the Comex futures market.
The entire VIX futures curve is in backwardation.
Normally, backwardation is a signal that a commodity is scarce.
The gold and silver basis indicates backwardation in gold and silver.
Instead, we are going to address two simple concepts, contango and backwardation.
Markets in Backwardation.
In such situations, the stock is said to be in backwardation.
Zinc, persistent backwardation strengthens prices.
The ICE Brent futures curve remains in backwardation.
In other words, backwardation indicates a massive erosion of trust in the financial system.
Arbitrage opportunities should quickly remove backwardation from any futures market.
Strangely enough, backwardation is the usual arrangement for the oil market.
When they are below, they are in backwardation.
Backwardation is the most complex ( and least understood ) benefit of some energy commodity ETFs.
And that 's when we kicked over into a backwardation.
In a backwardation market ( negative slope ) the future price is lower than the current one.
When then are trading below spot, the market is said to be in backwardation.
This will be preceded by a large increase in backwardation, all the way to permanent backwardation.
This is what is discovered by the market, when it goes into permanent backwardation.
When this occurs, it is called backwardation ( as opposed to contango ).
In the futures markets, the forward curve can be in either contango or backwardation.
Permanent gold backwardation ( negative gold basis ) is staring us in the face.
Inventory draws, strong product demand and backwardation are all positive.
This week, backwardation strengthened further, with prompt-month prices higher than forward prices.
The empirical evidence presented in this paper is consistent with Keynes ' theory of normal backwardation.
