Definitions
There is 1 meaning of the word
Backwardation.
Backwardation - as a noun
The market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity.
Example: "In treatise on money (1930, chapter 29), economist john maynard keynes argued that in commodity markets, backwardation is not an abnormal market situation, but rather arises naturally as "normal backwardation" from the fact that producers of commodities are more prone to hedge their price risk than consumers."
Example Sentences
"The futures market is currently experiencing backwardation as the spot prices are higher than the futures prices."
"Many traders use backwardation as a signal to sell their futures contracts and buy the underlying asset."
"The backwardation in the oil market reflected the immediate scarcity of supply."
"Investors often analyze backwardation to make informed decisions about their commodity investments."
"Some investors speculate in the futures market to take advantage of backwardation."
Word Game Points
Is BACKWARDATION a valid Scrabble word?
Yes, backwardation is valid for Scrabble UK/EU only
BACKWARDATION has a SCRABBLE points total of 25.
Is BACKWARDATION a valid Words With Friends word?
No, backwardation is NOT valid for Words With Friends
Invalid WordBACKWARDATION is not a valid Words With Friends word.
Is BACKWARDATION a valid WordFeud word?
Yes, backwardation is valid for WordFeud
Valid WordBACKWARDATION has a WORDFEUD points total of 27.
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Words
backwardations
