backwardation(Noun)

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.

1991: gold has never gone into backwardation in any currency uE000195444uE001 Reginald H. Howe, The Golden Sextant

backwardation(Noun)

The situation in a futures market where prices for future delivery are lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity.

1991: gold has never gone into backwardation in any currency uE000195444uE001 Reginald H. Howe, The Golden Sextant

Backwardation(noun)

the seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid. See Contango