Definition of backwardation in English English dictionary
fee paid by a seller on settlement day either to the buyer or to a third party who lends stock, when the seller wishes to defer settlement until the next settlement day
The situation in a futures market where prices for future delivery are lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity
1991: gold has never gone into backwardation in any currency — Reginald H. Howe, The Golden Sextant.
A trend in which futures prices are progressively lower in the distant delivery months Backwardation is the opposite of contango, and is also known as an Inverted Market
A market where the price for nearby delivery is higher than for further forward months
If the price of a commodity in the futures market is lower for the more distant contracts than it is for the nearer contracts, the commodity is said to be in backwardation Backwardation is the opposite of contango Oil is generally in backwardation whereas gold is generally in contango
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
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month BANs - Bond anticipation notes issued by state and local governments prior to the issue of bonds to even out cash flow Basis - The difference between a cash price at a specific location and the price of a particular futures contract Cash Price minus Futures Price = Basis Basis Point - Measurement of a change in the yield of a security One basis point equals 1/100 of one percent Bear - An individual who believes prices will move lower Bear Market - A market in which prices are declining
Payment by a bear to a bull for the loan of securities so that the bear (seller) may deliver his securities and thus avoid the risk of having to buy in (Rarely used in South Africa)
refers to a futures market where the nearby contracts have a higher price than the far month contracts
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today The opposite of contango
Market in which the near deliveries are priced at a premium because of tight supply
Market situation in which futures prices are progressively lower in the distant delivery months For instance, if the gold quotation for February is $160 00 per ounce and that for June is $155 00 per ounce, the backwardation for four months against January is $5 00 per ounce (Backwardation is the opposite of contango) See Inverted Market
On futures markets, a market where a commodity is in shortage, causing near contract months to sell at a premium and distant contract months to sell at discount
A market situation where the spot price trades at a premium to the forward price Opposite of contango
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today The opposite of contango
A market in which futures prices are progressively lower in the distant delivery months; the opposite of Contango See also Inverted Market
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month This situation may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today The opposite of contango
A futures market where the more distant delivery months trade at a discount to the near term delivery months Also known as "Inverted Market"
Prices in deferred delivery months are progressively lower than nearby months for storable commodities (inverted market)
- A market situation in which futures prices are progressively lower in the distant delivery months
The state of a futures contract in which the price of the future is below the cash price of the underlying asset The price of the future will be rising towards the cash price as the delivery date approaches
Market situation in which futures prices are lower in each succeeding delivery month Also known as an inverted market The opposite of contango