Understanding Backwardation: Key Concepts and Trading Insights
Sep 25, 2025 · Backwardation occurs when the current price of an asset is higher than its futures prices. This phenomenon often signals high demand for a commodity now compared to the …
Contango vs. Backwardation | Charles Schwab
Nov 25, 2025 · The slope of a futures curve—whether in contango or backwardation—can greatly impact the profitability and risk involved in several trading strategies.
Normal backwardation - Wikipedia
Backwardation occurs when the difference between the forward price and the spot price is less than the cost of carry (when the forward price is less than the spot plus carry), or when there …
Contango vs. Backwardation: What's the Difference? - U.S. News
Jan 12, 2024 · Contango and backwardation are trailing indicators that give you a snapshot of what is currently happening without offering a clear view of what will happen in the future.
What is Contango and Backwardation - CME Group
Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. …
Backwardation - Meaning, Examples, Vs Contango, Advantages
Backwardation arises when the present spot price of a commodity surpasses its future price. This uncommon and fleeting phenomenon can occur due to sudden demand spikes or unforeseen …
What is Backwardation, How it Works, Contango Differences
Backwardation is a term used to describe the structure of prices in the market across the time horizon, and is most often associated with commodities and futures markets. In …