Outrageously Funny Word Dictionary :: Backwardation

👉 In economics, backwardation refers to a situation where an investor or trader sells a bond or other asset that is currently being sold at a discount (i.e., below its market price) and buys another asset with a higher market price. This strategy allows the investor to profit from a difference in prices between the sale and purchase of the same asset, even if the original buyer has already purchased it. It's often used by traders for speculative trading or as a way to hedge against potential losses in an

backwardation