Backwardation is a market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). backwardation. Retrieved September 22, 2026, from http://smartdefine.org/backwardation/definitions/1148257 |
| Chicago | Barry Goldsmith. 2010. "backwardation" http://smartdefine.org/backwardation/definitions/1148257 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, backwardation, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/backwardation/definitions/1148257>. |
| MLA | Barry Goldsmith. "backwardation" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/backwardation/definitions/1148257> |