backwardation

[ bak-wer-dey-shuh n ]
/ ˌbæk wərˈdeɪ ʃən /

noun

(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.

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Origin of backwardation

First recorded in 1840–50; backward + -ation

Words nearby backwardation

backup, backup light, backward, backward and forward, backward heart failure, backwardation, backwards, backwash, backwater, backwater valve, backwind
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020

British Dictionary definitions for backwardation

backwardation
/ (ˌbækwəˈdeɪʃən) /

noun commerce

the difference between the spot price for a commodity, including rent and interest, and the forward price
(formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012