[R-SIG-Finance] A question on Forward Price

[Christofer Bogaso]

Just mentioned it on light manner in plain english...

I meant to say all forward quotes are less then spot and for distant
forward months it would be more lesser. English is not my primary
language so if I could not explain it properly, then as an example I
would like to point here
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

On Mon, Jun 30, 2014 at 4:45 AM, Michael Weylandt
<michael.weylandt at gmail.com> wrote:
>> On Jun 29, 2014, at 18:32, Christofer Bogaso <bogaso.christofer at gmail.com> wrote:
>>
>> I defined backwardination as forward curve is downward sloping as
>> compared to spot. So you may term it as you said 'forward prices
>> increasing/decreasing'. I felt this is bit different than what you
>> said as 'difference between expected and futures'.
>
> This is very non-R so the listmaster may tell us off, but until he does:
>
> What does it mean for a curve to be 'downward sloping *as compared to a point*'?
>
> Leaving aside the finance, I'm not sure what geometry you're describing here.
>
> Michael