Definition from Wiktionary, the free dictionary
backwardation (plural backwardations)
- (finance) The situation in a futures market where prices for future delivery are lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity.
1991, Reginald H. Howe, The Golden Sextant:
- gold has never gone into backwardation in any currency
- (obsolete, London Stock Exchange) 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.