backwardation (Meaning)
backwardation (n.)
The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid. See Contango.
Synonyms & Antonyms of backwardation
No Synonyms and anytonyms found
FAQs About the word backwardation
The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid.
No synonyms found.
No antonyms found.
The market was in backwardation, with spot prices exceeding future prices.
The backwardation in the oil market indicated strong current demand and anticipation of future supply shortages.
The reversed backwardation signaled a shift in market sentiment, with investors expecting future prices to increase.
The extent of backwardation can be used to gauge the intensity of market tightness.
