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Definition of Backwardation
1. n. The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid. See Contango.
Definition of Backwardation
1. Noun. (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. ¹
2. Noun. (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. ¹
¹ Source: wiktionary.com
Lexicographical Neighbors of Backwardation
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