backwardation [noun]

Definition of backwardation:

The situation in a futures market where prices for future deliveryare lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity.

Synonyms of backwardation:

● Offset

● Deflection

● Inset

● Offsetting

● Inset outset

● Drift

● Remoting

● Annulment

● Atavism


Opposite/Antonyms of backwardation:

● Contango


Sentence/Example of backwardation:

Gold remains in backwardation right out to the six month term but at low rates.