backwardation

[ bak-wer-dey-shuh n ]
/ ˌbæk wərˈdeɪ ʃən /

noun

(on the London stock exchange) the fee paid by a seller of securities to the buyer for the privilege of deferring delivery of purchased securities.

Origin of backwardation

First recorded in 1840–50; backward + -ation

British Dictionary definitions for backwardation

backwardation
/ (ˌbækwəˈdeɪʃən) /

noun commerce

the difference between the spot price for a commodity, including rent and interest, and the forward price
(formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period