backwardation

[bak-wer-dey-shuh n] /ˌbæk wərˈdeɪ ʃən/
noun
1.
(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.
Origin
1840-50; backward + -ation
Examples from the web for backwardation
  • Near term prices then fall back, reducing the futures market backwardation and improving the incentives to build inventories.
  • The accountant wonders if his futures market holdings back home are headed for contango or backwardation.
  • Finally, gasoline prices were in steep backwardation until recently, discouraging inventory growth at the margin.
  • Crude oil futures contracts have historically traded in backwardation, the case in which futures prices are below spot prices.
British Dictionary definitions for backwardation

backwardation

/ˌbækwəˈdeɪʃən/
noun (commerce)
1.
the difference between the spot price for a commodity, including rent and interest, and the forward price
2.
(formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period