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Backwardation
Meaning
Noun
●
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
.
●
In Stock market:
The
situation
in a
stock market
where the
offer
price for
stock
is lower than the
bid
price.
●
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.
Sourced from
Wiktionary
Origin
backwardation
English
-ation
English
backward
English
abakward
Old English (ca. 450-1100)
-ward
Old English (ca. 450-1100)
back
Old English (ca. 450-1100)
Sourced from
Etym
Antonyms
Contango
Forwardation
Related
Contango
Downtrend
Deflation
Volatility
Illiquidity
Equities
Bearish
Uptrending
Bear Market
Yield Curve
Futures Market
Spot Price
Bull Market
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