inverted market

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 options and futures, a situation where prices on contracts with short expirations or maturities are higher than those with longer expirations or maturities. This is rather unusual, as most investors demand a premium for longer term investments. An inverted market usually occurs when the underlying securities have low supply in the short term.

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.
References in periodicals archive ?
Soybeans are particularly interesting because its market has gone from a contango to an inverted market.
Neither sugar nor coffee had inverted markets, although sugar is very close.
The decline in earnings reflected an increase in the Company's loan loss provision, the negative effects of an inverted market rate curve on the Company's net interest margin, and a slowing real estate economy.