Term:
Backwardation
Definition:

In the stock exchange market, a charge paid by an investor who has not yet acquired securities, does not want to do so at the prevailing rate, and, therefore, does not take up delivery of the securities but carries delivery over to the next accounting period.
In the futures market a market situation in which the nearby month contract price or the cash price is higher than the deferred month contract price.

Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt
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