backwardation

American  

[bak-wer-day-shuhn] / 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.

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backwardation British  

/ ˌbækwəˈdeɪʃən /

noun

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

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Etymology

Origin of backwardation

First recorded in 1840–50; backward + -ation

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Compare meaning

How does backwardation compare to similar and commonly confused words? Explore the most common comparisons:

• contango vs. backwardation

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Example Sentences

See Examples For:

backwardation

The forward curve for TTF-the Netherlands-based benchmark that sets the price for much of Europe’s natural gas-has moved into backwardation, meaning shorter-dated contracts are more expensive than longer-dated ones.

From The Wall Street Journal ● Jul. 15, 2026

Slok pointed out that the Brent forward curve — the relationship between current prices of a futures contract and prices for contracts at later delivery dates — is in steep backwardation.

From MarketWatch ● Apr. 22, 2026

The backwardation really began to form at the onset of the war in late February, continued to widen until April 2 and has since tightened a bit, according to Dow Jones Market Data.

From MarketWatch ● Apr. 13, 2026

“The commodity landscape is littered with backwardation vs. contango trades gone bad. Now the Department of Energy is out there rolling the dice.”

From The Wall Street Journal ● Mar. 13, 2026

The X platform was full of people who couldn’t spell backwardation six months ago suddenly explaining why silver is overvalued.

From MarketWatch ● Dec. 30, 2025

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