backwardation

From backward +‎ -ation (suffix denoting an action or process).[1]

• (Received Pronunciation) IPA^(key): /bækwəˈdeɪʃn̩/

• Audio (Southern England)

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• (General American) IPA^(key): /bækwəˈdeɪʃ(ə)n/

• Audio (US)

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• Rhymes: -eɪʃən
• Hyphenation: back‧ward‧at‧ion

backwardation (countable and uncountable, plural backwardations) (stock market, finance)

1. In full normal backwardation: the situation in a futures market where the price for future delivery of a commodity (the forward price) is lower than the price for immediate delivery (the spot price) or nearer delivery, generally arising from a near-term shortage of the commodity.

   Antonyms: contango, forwardation

2. A situation in which short-term interest rates are higher than long-term interest rates.
3. The situation in a stock market where the offer price for stock is lower than the bid price.
4. (obsolete) In the 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.

   Antonym: contango

• normal backwardation on Wikipedia.Wikipedia