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backwardation

[bak-wer-dey-shuh n] /ˌbæk wərˈdeɪ ʃən/
noun
1.
(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
1840-1850
1840-50; backward + -ation
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Examples for backwardation
  • 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.
British Dictionary definitions for backwardation

backwardation

/ˌbækwəˈdeɪʃən/
noun (commerce)
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 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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