In backwardation, the spot cost of an asset is bigger than its long term costs. This generally happens when demand for fast supply outweighs supply. The difference between spot price ranges and futures price ranges can lead to contango (when futures fall to satisfy the reduced spot value) or backwardation https://preciousmetalsdealers26789.blogunteer.com/37327885/indicators-on-exchange-traded-funds-etfs-you-should-know