the difference between the spot price for a commodity, including rent and interest, and the forward price
2.
(formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period
backwardation in Finance
(bækwərdeɪʃən)
noun
(Finance: Investment, Stocks)
Backwardation is a situation in which the price of a forward or futures contract is trading below the expected spot price when the contract matures.
Our test results show that the basis pattern of these futures will generally switchfrom backwardation several months before the last trading day to contango as it approaches the lasttrading day.
Copper, like oil, is an industrial commodity that gets used up, and can fall intobackwardation.
Backwardation is a situation in which the price of a forward or futures contract is trading belowthe expected spot price when the contract matures.