- 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. See Contango.
Backwardation Backwardation is 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
Definition
[ n.]