backwardation

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English[edit]

Etymology[edit]

From backward +‎ -ation (suffix denoting an action or process).[1]

Pronunciation[edit]

Noun[edit]

backwardation (countable and uncountable, plural backwardations) (stock market)

  1. In full normal backwardation: the situation in a futures market where the price for future delivery of a commodity (the forward price) is lower than the price for immediate delivery (the spot price) or nearer delivery, generally arising from a near-term shortage of the commodity.
    Antonyms: contango, forwardation
  2. The situation in a stock market where the offer price for stock is lower than the bid price.
  3. (obsolete) In the London Stock Exchange: a fee paid by a seller on settlement day either to the buyer or to a third party who lends stock, when the seller wishes to defer settlement until the next settlement day.
    Antonym: contango

Translations[edit]

References[edit]

  1. ^ backwardation, n.”, in OED Online Paid subscription required, Oxford, Oxfordshire: Oxford University Press, December 2022; “backwardation, n.”, in Lexico, Dictionary.com; Oxford University Press, 2019–2022.

Further reading[edit]