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KnowledgeBase
Terms & Definitions
Account Information
Market & Trading Information
Trading
Market Structure
Product Information
Terms & Definitions
Margins & Risk Management
Policies and Procedures
App & Platform Information
MetroTrader
What is backwardation?
When spot prices trade higher than futures prices for a given market, this is called backwardation.
Over time, the spot price and the futures price will converge, this is known as convergence.