BACKWARDATION

Etymology

Noun

backwardation (countable and uncountable, 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.

(obsolete, 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.

Antonyms

• contango

• forwardation

Source: Wiktionary

Back`war*da"tion, n. Etym: [Backward, v.i.+ -ation.] (Stock Exchange)

Definition: 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. Biddle.

Source: Webster’s Unabridged Dictionary 1913 Edition