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Backward linkage |
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Backward linkageThe use by one firm or industry of produced inputs from another firm or industry.Similar MatchesBackward integrationBackward integrationAcquisition by a firm of its suppliers. Backward compatibilityBackward compatibilityCompatibility with earlier versions of software. When referring to Web pages, it means the Web page has been coded so the appearance and functionality of the page will be acceptable when it is viewed on computers with older versions of popular browsers. BackwardationBackwardationA market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango. BackwardationBackwardationIn the futures market the price of a contract for future delivery of a commodity usually trades above the spot price because the owner of the contract is deemed to have the advantage of holding cash until the time of delivery and is assumed to be able to earn interest on that cash.Occasionally, however, the spot price actually exceeds the futures price. This is known as backwardation, or an inverted market. Normal backwardation theoryNormal backwardation theoryHolds that the futures price will be bid down to a level below the expected spot price. Further SuggestionsBackward bending |
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