HomeDefinitionsCompareDebt Normal backwardation theoryThe financial definition for Normal backwardation theory:Holds that the futures price will be bid down to a level below the expected spot price. Similar MatchesBackwardationBackwardationA market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango. Click to compare definitions of Normal backwardation theory Click to view definitions beginning no |