Futures Trading Terms Glossary

BACKWARDATION

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

B

Backwardation×

A futures market in which the front month is higher in price than the back months. It is the opposite of Contango. See Inverted Market.