# Backwardation

*Derivatives & Options — Finicade finance glossary*

When futures prices sit below today's spot price, so the curve slopes down — often a sign of tight supply or strong demand for the asset right now. The mirror image of contango.

**Also known as:** contango vs backwardation

**Related terms:** [Contango](https://finicade.com/glossary/contango), [Futures Contract](https://finicade.com/glossary/futures-contract), [Commodities](https://finicade.com/glossary/commodities)

**Taught in:** Quant Quest — Commodities

Source: https://finicade.com/glossary/backwardation