Noun
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.
Source: Webster's dictionaryA contract in backwardation will increase in value until it equals the spot price of the underlying at maturity. Source: Internet
"A market is 'in backwardation' when the futures price is below the spot price for a particular commodity. Source: Internet
Backwardation is a function of near-term demand being higher than the available supply. Source: Internet
For example, if it costs more to lease silver for 30 days than for 60 days, it might be said that the silver lease rates are "in backwardation". Source: Internet
In more recent years, a backwardation in equities quoted on the London Stock Exchange has come to signify the unusual occurrence of an individual equities quote whereby the bid appears to be higher than the offer. Source: Internet
Normal backwardation, also sometimes called backwardation, is the market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity. Source: Internet