Inverted Market


DEFINITION of 'Inverted Market'

In the context of options and futures, this is when the current (or short-term) contract prices are higher than the long-term contracts.

BREAKING DOWN 'Inverted Market'

This usually occurs because a good is currently in short supply, which drives up prices in the short term.

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    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
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