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:
“I don’t mind saying in advance that in my opinion jealousy is normal and healthy. Jealousy arises out of the fact that children love. If they have no capacity to love, then they don’t show jealousy.”
—D.W. Winnicott (20th century)