backwardation

(redirected from Backwardization)
Also found in: Financial.
Related to Backwardization: Contango, Normal backwardation theory

back·war·da·tion

 (băk′wər-dā′shən)
n.
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.

backwardation

(ˌbækwəˈdeɪʃən)
n
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
Translations

backwardation

[ˌbækwəˈdeɪʃən] N (St Ex) → retraso m en la entrega de acciones; (= fee) → prima f pagada por retraso en la entrega de acciones
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References in periodicals archive ?
In expert testimony to the House Natural Resources Committee, Kelleher argued that these funds affect commodities futures forward curves and showed that, whereas backwardization (flat or decreasing price curves) were more common in the period before deregulation, contango effects (rising futures price curves) were significantly more frequent after deregulation.