inverted market

inverted market definition - finance
A futures market where the nearer monthsÂ’ contracts are more expensive than the distant monthsÂ’ contracts. An inverted market occurs during periods of shortages. Typically, the further months are more expensive because the goods have the additional costs of insurance, storage, and interest costs incurred in borrowing funds to hold the commodities.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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