Backwardation
//bækwəˈdeɪʃn̩// noun
noun ·Rare ·Advanced level
Definitions
Noun
- 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. countable, uncountable
- 2 the market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity. wordnet
- 3 A situation in which short-term interest rates are higher than long-term interest rates. countable, uncountable
- 4 The situation in a stock market where the offer price for stock is lower than the bid price. countable, uncountable
- 5 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. countable, obsolete, uncountable
Antonyms
All antonymsEtymology
From backward + -ation (suffix denoting an action or process).
More for "backwardation"
Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.