backwardation

Definitions

Accounting

Economics

  • noun the difference between the spot and futures prices, as when the spot price of a commodity or currency is higher than the futures price

Forex

  • A situation in which the price of a futures contract is lower in distant delivery months than it is in closer delivery months. This produces a negatively sloping forward curve.
http://www.dictionarycentral.com/definition/backwardation.html