Definitions
from The American Heritage® Dictionary of the English Language, 5th Edition.
- 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.
from The Century Dictionary.
- noun 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 .
from the GNU version of the Collaborative International Dictionary of English.
- noun (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 .
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun finance The situation in a
futures market whereprices for futuredelivery are lower than prices forimmediate (or nearer) delivery. Generally arising from a near-termshortage of acommodity . - noun obsolete, London Stock Exchange
fee paid by aseller on settlement day either to thebuyer or to a third party who lendsstock , when the seller wishes to defer settlement until the next settlement day.
Etymologies
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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"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.
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"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.
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"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.
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A certain degree of backwardation is normal (hence the phrase "normal backwardation").
Backwardation, Arnold Kling | EconLog | Library of Economics and Liberty
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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.
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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.
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The result, analysts say, is "backwardation" - a situation in which futures-contract prices are lower than spot prices.
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The result, analysts say, is "backwardation" - a situation in which futures-contract prices are lower than spot prices.
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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.
Crude Declines on Europe Worries; Falls Out of Backwardation
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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.
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- Alsatian
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- abbreviation
- abdication
- aberration
- abomination
- abrogation
- acceleration
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- deforestation
- deformation
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- delineation
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- demilitarization
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- democratization
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- denomination
- denuclearization
- denunciation
- deportation
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- deprivation
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- desalination
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- designation
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- information
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- instrumentation
- insubordination
- insulation
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- interpretation
- interrogation
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- ionization
- irradiation
- irrigation
- irritation
- isolation
- jubilation
- justification
- laceration
- lactation
- legalization
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- levitation
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- liberation
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- ligation
- limitation
- liquidation
- litigation
- localization
- location
- lubrication
- machination
- magnetization
- magnification
- malformation
- manifestation
- manipulation
- marginalization
- masturbation
- maturation
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- mediation
- medication
- meditation
- menstruation
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- mineralization
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- ministration
- misallocation
- misapplication
- misappropriation
- miscalculation
- mischaracterization
- miscommunication
- miscreation
- miseration
- misidentification
- misinformation
- misinterpretation
- misrepresentation
- mitigation
- mobilization
- moderation
- modernization
- modification
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- molestation
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- motivation
- multiplication
- mummification
- mutation
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- narration
- nation
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- navigation
- negation
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- nomination
- nondiscrimination
- nonproliferation
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- notation
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- nucleation
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- obligation
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- observation
- occupation
- operation
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- ordination
- organisation
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- origination
- ornamentation
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- ossification
- ostentation
- ovation
- overpopulation
- overregulation
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- ovulation
- oxidation
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- participation
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- penetration
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- perspiration
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- pigmentation
- plantation
- polarization
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- pollination
- polymerization
- pontification
- popularization
- population
- precipitation
- predation
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- prefabrication
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- sensation
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- situation
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- solicitation
- sophistication
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- specification
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- stabilization
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- stagnation
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- starvation
- station
- sterilization
- stimulation
- stipulation
- strangulation
- subluxation
- subordination
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- substantiation
- suburbanization
- suffocation
- summation
- superstation
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- synchronization
- syndication
- tabloidization
- tabulation
- taxation
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- temptation
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- titillation
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- translation
- transplantation
- transportation
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- tribulation
- ulceration
- undervaluation
- unification
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- urbanization
- usurpation
- utilization
- vacation
- vaccination
- vacillation
- validation
- valuation
- vaporization
- variation
- vegetation
- veneration
- ventilation
- verification
- vibration
- victimization
- vilification
- vindication
- violation
- visitation
- visualization
- vocation
- vulgarization
- westernization
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