backwardation

[bak-wer-dey-shuhn]
noun
(on the London stock exchange) the fee paid by a seller of securities to the buyer for the privilege of deferring delivery of purchased securities.

Origin:
1840–50; backward + -ation

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
Cite This Source Link To backwardation
Collins
World English Dictionary
backwardation (ˌbækwəˈdeɪʃən)
 
n
1.  the difference between the spot price for a commodity, including rent and interest, and the forward price
2.  (formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
Cite This Source
Example sentences
Near term prices then fall back, reducing the futures market backwardation and improving the incentives to build inventories.
The accountant wonders if his futures market holdings back home are headed for contango or backwardation.
Finally, gasoline prices were in steep backwardation until recently, discouraging inventory growth at the margin.
Crude oil futures contracts have historically traded in backwardation, the case in which futures prices are below spot prices.
Related Words
Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature
FAVORITES
RECENT

;