<p><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNWY0ODFkNjItYWU4OS00ZGQ5LTk5NzMtNWUyOTEyMWJiYjkwLmpwZw==.jpg"></p><p>Backwardation reflects a market condition wherein spot prices trade higher than future prices.</p>