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ALL meanings of backwardation

back·ward·a·tion
B b
  • noun backwardation the difference between the spot price for a commodity, including rent and interest, and the forward price 3
  • noun backwardation (formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period 3
  • noun backwardation Backwardation is a situation in which the price of a forward or futures contract is trading below the expected spot price when the contract matures. 3
  • noun backwardation law: fee for delayed delivery 1
  • noun backwardation finance: economic theory 1
  • noun backwardation (on the London stock exchange) the fee paid by a seller of securities to the buyer for the privilege of deferring delivery of purchased securities. 1
  • noun backwardation (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
  • noun backwardation (Obsolete (No longer in use)) (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. 0
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