backwardation

noun

Meaning

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.
(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.

Etymology / origin

No prose etymology has been added yet.

No ancestor words have been linked yet.

Related words

contango(English)forward(English)forward market(English)forward contract(English)spread(English)futures market(English)netback(English)backsell(English)futures(English)commodities(English)maturity(English)price(English)

Descendant words

No descendant words have been linked yet.

Sources

DictionaryAPI.dev English dictionary data