backwardation English

Meaning backwardation meaning

What does backwardation mean?

backwardation noun

— (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.

— (obsolete, London Stock Exchange) A 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.

Synonyms backwardation synonyms

What other words have the same or similar meaning as backwardation?

backwardation English » English

forward discount