backwardation Antonyms
No Synonyms and anytonyms found
Meaning of backwardation
backwardation (n.)
The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid. See Contango.
backwardation Sentence Examples
- The market was in backwardation, with spot prices exceeding future prices.
- The backwardation in the oil market indicated strong current demand and anticipation of future supply shortages.
- The reversed backwardation signaled a shift in market sentiment, with investors expecting future prices to increase.
- The extent of backwardation can be used to gauge the intensity of market tightness.
- Arbitrageurs exploited the backwardation by buying spot commodities and selling futures contracts.
- The backwardation premium reflected the cost of carrying the commodity until its future delivery date.
- The backwardation structure incentivized producers to increase current production at the expense of future reserves.
- The market's backwardation correction resulted in a narrowing of the spread between spot and future prices.
- The backwardation in the copper market prompted industrial users to reduce their consumption.
- The backwardation in the agricultural market signaled a potential food security crisis in the coming year.
FAQs About the word backwardation
The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid.
No synonyms found.
No antonyms found.
The market was in backwardation, with spot prices exceeding future prices.
The backwardation in the oil market indicated strong current demand and anticipation of future supply shortages.
The reversed backwardation signaled a shift in market sentiment, with investors expecting future prices to increase.
The extent of backwardation can be used to gauge the intensity of market tightness.
