Inverted market
A
futures market in which the nearer months are selling at price premiums to the more distant months. Related:
premium.
Inverted market
A futures market in which near-month contracts are selling at prices that are higher than those for deferred months. An inverted market is characteristic of a short-term supply shortage. The notable exceptions are interest rate futures, which are inverted when the distant contracts are at a premium to near month contracts.