inverted market

inverted market definition - business

inverted market

In futures or options trading, a market with nearby contracts having a price that is higher than more distant contracts. This unusual situation may occur when the underlying asset is heavily in demand. Also called backwardation. Compare contango.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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