backwardation

== English == === Etymology === From backward +‎ -ation (suffix denoting an action or process). === Pronunciation === (Received Pronunciation) IPA(key): /bækwəˈdeɪʃn̩/ (General American) IPA(key): /bækwəˈdeɪʃ(ə)n/ Rhymes: -eɪʃən Hyphenation: back‧ward‧at‧ion === Noun === backwardation (countable and uncountable, plural backwardations) (stock market, finance) 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 A situation in which short-term interest rates are higher than long-term interest rates. The situation in a stock market where the offer price for stock is lower than the bid price. (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 ==== Translations ==== === References === === Further reading === normal backwardation on Wikipedia.Wikipedia