backwardation
(bækwəˈdeɪʃən)
[f. prec. vb. + -ation (after ns. from vbs. of Latin origin as retard-ation).]
Stock Exchange term for a percentage paid by a seller of stock for the privilege of keeping back or delaying its delivery till the following account or to any other future day agreed upon.
| 1850 Keyser Law Stock Exch., The term Backwardation is employed when stock is more in demand than money, and a premium is given to obtain the loan of stock against its value in money. a 1860 C. Fenn Eng. & For. Funds (1883) 127 Backwardation is paid by the speculator for the fall, or the Bear, in order to postpone delivery until the following account. 1880 Society 3 Sept. 16 The Bear a good contango loves, The Bull a backwardation. 1883 Pall Mall G. 11 Sept. 9/2 At the opening 1/4 backwardation to 1/4 contango was charged. |