can someone explain?
Backwardation: Futures price < Current spot price Normal backwardation: Futures price < Expected spot price
Spot > Forward = backwardation Expected spot > forward = normal backwardation
excellent thank you.
There was a case last year where I think both inequalities were true, and everyone got it wrong. Something like, S0 < F0 and F0 < E(S0)? Do the search and post here please.
+1 “Expected” then “normal” otherwise just contango or backwardation depending on what future price is