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backwardation Twit Definition of backwardation Share Definition of backwardation on Facebook Digg:Definition of backwardation! stumble Definition of backwardation Bookmark Definition of backwardation on Delicious submit Definition of backwardation to reddit Bookmark Definition of backwardation
noun 
  1. 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.
1991: gold has never gone into backwardation in any currency — Reginald H. Howe, The Golden Sextant http://www.goldensextant.com/goldensextant.html
  1. (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.
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