noun back·ward·a·tion \ˌbakwə(r)ˈdāshən\

Definition of backwardation



  1. 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. 2 :  the premium paid in backwardation — compare contango

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Origin and Etymology of backwardation

1backward + -ation

First Known Use: 1850

Seen and Heard

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a brief usually trivial fact

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