Definition of backwardation in English:
noun[mass noun] Stock Exchange , British
1A situation in which the spot or cash price of a commodity is higher than the forward price: the development of a backwardation is associated with supply shortage Often contrasted with contango.
More example sentences
- In the case of agricultural commodities backwardation provides a most powerful incentive for traders to sell the cash commodity and buy the futures.
- Ministers have announced plans to cut production before prices start to weaken, helping to create the conditions for a sustained price backwardation, pricing physical oil at a premium to future supplies.
- This caused a significant disturbance in the market and exacerbated a backwardation in the price of tin.
1.1A situation in which the offer price for stock is lower than the bid.
- Gold remains in backwardation right out to the six month term but at low rates.
- I am sure that your position is a hedge, but if your physical metal is delayed, you may have to borrow at this backwardation.
- The backwardation widened to $28.50 per tonne in aftermarket trading late Wednesday.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in the UK
Most popular in Canada
Most popular in Australia
Most popular in Malaysia
Most popular in India
Most popular in Pakistan