Jun 4, 2010 20:59
14 yrs ago
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Bahasa Inggeris term

backwardation

GBK Bahasa Inggeris hingga Bahasa Malaysia Perniagaan/Kewangan Kewangan (am)
Definition from Bloomberg.com:
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.
Example sentences:
Backwardation is not an uncommon thing, I mean, it happens every once it a while in the futures markets, HOWEVER, backwardation in monetary metals is a very rare occurrence. (Gold Speculator)
Investors much prefer backwardation markets. That way, they pocket money as the index funds rollover, since further-out futures are cheaper than the futures they original sold. (Investment U)
Holders of gold would keep selling cash gold and buying the futures until the backwardation disappeared. (GoldSeek)
Change log

Jun 4, 2010 20:55: changed "Kudoz queue" from "In queue" to "Public"

Jun 4, 2010 20:59: changed "Stage" from "Preparation" to "Submission"

Jun 7, 2010 21:58: changed "Stage" from "Submission" to "Selection"

Jun 14, 2010 21:56:

Jul 4, 2010 21:56:

Aug 3, 2010 21:56:

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