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inverted market

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Inverted Market
In the context of options and futures, this is when the current (or short-term) contract prices are higher than the long-term contracts.

Notes:
This usually occurs because a good is currently in short supply, which drives up prices in the short term.


Inverted market
A futures market in which the nearer months are selling at price premiums to the more-distant months. Related: Premium.

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.

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amp;ldquo;If we would happen to see an inverted market develop, we could empty the cupboard.
 
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