back·​ward·​a·​tion | \ ˌbakwə(r)ˈdāshən \
plural -s

Definition of backwardation

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

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First Known Use of backwardation

1850, in the meaning defined at sense 1

History and Etymology for backwardation

backward entry 1 + -ation

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Time Traveler for backwardation

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The first known use of backwardation was in 1850

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Cite this Entry

“Backwardation.” Dictionary, Merriam-Webster, Accessed 17 Jan. 2021.

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