Backwardation
Backwardation describes a futures curve in which later delivery prices are below nearer prices for the comparison used.
Plain-language meaning
Backwardation describes a futures curve in which later delivery prices are below nearer prices for the comparison used.
Why it is useful
Backwardation is useful as descriptive evidence when it is compared on the same definition, source, period, unit and exact listing. It is one input to research, not a verdict.
Where it appears in XMarketRadar
Look for Backwardation in Futures, Option Chain, Options Screener and derivative study tables for a selected underlying and contract.
How it is calculated or sourced
Backwardation is sourced or derived according to the definition shown above and the screen's disclosed provider, inputs, window and as-of time. Missing required inputs produce an unavailable result.
Inputs, period and unit
Read the disclosed inputs or source, observation period, bar interval, unit, native currency and scale. A value without its source and as-of context is incomplete; unlike units must not be combined.
Worked example
Illustrative only: If near copper futures are ₹850 and a later comparable expiry is ₹830, the selected part of the curve is in backwardation.
What high and low mean
A higher or lower Backwardation value is descriptive, not automatically good or bad. Meaning depends on the instrument, comparison period, method and related evidence.
Positive, negative and genuine zero
Positive and negative Backwardation values retain the definition shown here. A genuine reported or computed zero is displayed as 0 and is not the same as missing evidence.
Limitations and common mistakes
Backwardation may differ by provider definition, observation time, instrument and venue. Common mistakes are dropping units or dates, comparing unlike scopes, and treating a missing value as zero.
Market-specific differences
Contract size, exercise style, expiry, settlement, price unit and trading rules vary across all supported markets. Always use the selected contract specification.
Suggested next steps
Open the related Derivatives terms below, then follow the matching Help Centre task guide and inspect Backwardation on an exact exchange listing. Confirm source, as-of time, units and unavailable reason before using it in research.
Educational information only; not investment advice or an order service.
This Backwardation tutorial is educational and descriptive. It is not investment advice, a price prediction, a recommendation, or an instruction to buy, sell, rebalance or place an order.