Backwardation Definition

băkwər-dāshən
noun
A state in which the price of a futures contract is lower than the eventual or expected spot price of the underlying commodity or security.
American Heritage

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

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

Other Word Forms of Backwardation

Noun

Singular:
backwardation
Plural:
backwardations

Origin of Backwardation

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backwardation