backwardation

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English[edit]

Etymology[edit]

backward +‎ -ation

Noun[edit]

backwardation ‎(plural backwardations)

  1. (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: gold has never gone into backwardation in any currency — Reginald H. Howe, The Golden Sextant [1]
  2. (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.

Antonyms[edit]