noun
- Plural of backwardation; a market condition in which the price of a commodity or security for immediate delivery is higher than the price for future delivery.
Usage: finance; commodities trading
Examples
- The oil market experienced backwardations when immediate supply was scarce.
- Traders profited from the backwardations in the gold futures market.
- Backwardations typically occur when there is strong current demand for a commodity.
- The persistent backwardations in crude oil reflected tight supply conditions.
- Investors must understand backwardations to navigate commodity markets effectively.