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Commodity

Backwardation

. In the world of finance, the concept of futures market can be quite complex. A key aspect to understand is how prices of commodities are affected in this market. When a commodity is in short supply, the near month contract will be sold at a higher price, while the distant month contract will be sold at a lower price. This is due to the spot price of the commodity being higher than the forward price. Essentially, this reflects the current demand and scarcity of the commodity. It's important to keep this in mind when making decisions in the futures market.

Related terms

NBOT

Understand the meaning and definition of NBOT in the context of stock market, trading, and investments.

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NCDEX

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Arbitration

Understand the meaning and definition of Arbitration in the context of stock market, trading, and investments.

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NCDEXRAIN

Understand the meaning and definition of NCDEXRAIN in the context of stock market, trading, and investments.

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Full Carrying Charge Market

Understand the meaning and definition of Full Carrying Charge Market in the context of stock market, trading, and investments.

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Trade date

Understand the meaning and definition of Trade date in the context of stock market, trading, and investments.

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