backwardation

noun

back·​ward·​a·​tion

ˌbakwə(r)ˈdāshən

plural -s

1

: the seller's postponement of delivery of stock or shares on the London Stock Exchange with the consent of the buyer upon payment of a premium to the latter

2

: the premium paid in backwardation compare contango

Word History

Etymology

backward entry 1 + -ation

First Known Use

1850, in the meaning defined at sense 1

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