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.
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.