inverted market

Inverted market

A futures market in which the nearer months are selling at price premiums to the more-distant months. Related: Premium.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
In an inverted market, the futures price for distance deliveries is less than the spot price, reflecting an expected falling spot price possibly coupled with relatively high gains of convenience yield in the case of a physical asset and dividend benefit to the owner of the asset in the case of a financial asset.
Neither sugar nor coffee had inverted markets, although sugar is very close.