backwardation(redirected from Backwardization)
Also found in: Financial.
Related to Backwardization: Contango, Normal backwardation theory
A state in which the price of a futures contract is lower than the eventual or expected spot price of the underlying commodity or security.
1. (Stock Exchange) the difference between the spot price for a commodity, including rent and interest, and the forward price
2. (Stock Exchange) (formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period