backwardation

Definitions

Accounting

• noun a penalty paid by the seller when postponing delivery of shares to the buyer
• noun a situation in which the cash price is higher than the forward price.

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.

Nearby Definitions of “backwardation”

• Back to Methuselah
• back up
• backbone
• background
• backup
• backwardation
• bacon
• Baconian theory
• bad
• badger
• baffle

Contexts for “backwardation”

4 definitions in context
• Accounting
• Economics
• Forex