NYSE

Trading Basics

Other Trading Basics

Backwardation

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

Read More »

Start learning now

Learn the skills needed to trade the markets on our Trading for Beginners course.

Register Now

[formidable id=11]

Request a Free Broker Consultation

Simply answer a few questions about your trading preferences and one of Forest Park FX’s expert brokerage advisers will get in touch to discuss your options.

[formidable id=5]

Information you provide via this form will be shared with Forest Park FX only as per our Privacy Policy.