Definitions
Century Dictionary and Cyclopedia
- n. On the London Stock Exchange, the premium paid by a seller of stock for the privilege of postponing its delivery to the buyer until the next fortnightly settling-day. See contango.
Wiktionary
- n. finance 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.
- n. obsolete, London Stock Exchange 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.
GNU Webster's 1913
- n. (Stock Exchange) 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.
Etymologies
- backward + -ation (Wiktionary)
Examples
“A certain degree of backwardation is normal (hence the phrase "normal backwardation").”
Backwardation, Arnold Kling | EconLog | Library of Economics and Liberty
“The methodology employed by the underlying index of USCI seeks to minimize the harmful effects of contagion by favoring commodities in backwardation (positive roll-yield) and longer-term contracts," he explains.”
“We are seeing signs of increasing demand for energy, evidenced by the oil market recently moving into "backwardation" -- where current oil contracts are priced higher than future ones.”
“The result, analysts say, is "backwardation" - a situation in which futures-contract prices are lower than spot prices.”
“December Nymex crude futures dropped below the January-delivery contract, ending a situation where the front-month contract was priced higher than those further in the future, also known as backwardation.”
The Wall Street Journal: Crude Declines on Europe Worries; Falls Out of Backwardation
“Front-month Nymex crude ended with a 14-cent premium to the second month in the fourth day of the market price structure known as backwardation, where near-month contracts are priced higher than those further out into the future.”
The Wall Street Journal: Oil Jumps 4.2% on Europe Hopes; US GDP
“Benchmark crude on the New York Mercantile Exchange is now cheaper further in the future—a phenomenon called "backwardation.”
“For oil-market veterans, this pattern, called "backwardation" in industry parlance, is a signal that traders are preparing for a period of tight supplies, a clue that higher prices may be ahead.”
“Another factor contributing to the rise has been a market condition called "backwardation," where oil contracts for nearby months are priced higher than months further into the future.”
The Wall Street Journal: Oil Prices Close at 2-Month High on Bullish News
“This week, front-month crude on the Nymex jumped in price above subsequent months, a phenomenon known as backwardation that typically signals worries about a near-term supply crunch.”
The Wall Street Journal: Crude Pauses as Europe Debt Questions Persist
Lists
These user-created lists contain the word ‘backwardation’.
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back phrases/hyphens/compounds
backache to backyard
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wot, no?
miscellaneous words that weren't here till I added them
iraimbilanja, luma, lwei, emalangeni, laari, sene, maloti, lisente, ekuele, bipkwele, renegue, chaource and 123 more...
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