backwardation
Americannoun
noun
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the difference between the spot price for a commodity, including rent and interest, and the forward price
-
(formerly, on the Stock Exchange) postponement of delivery by a seller of securities until the next settlement period
Etymology
Origin of backwardation
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
The ICE Brent forward curve remains in backwardation—meaning near-term oil prices are higher than future prices—suggesting the market is tight in the short term.
The ICE Brent forward curve remains in backwardation—when near-term prices are higher than prices for later delivery—into 2026 and 2027, suggesting near-term supply risk is perceived as higher than headline surplus numbers imply, according to market watchers.
At times of extreme stock market anxiety the VIX often jumps above VIX futures, pushing the VIX curve into a condition known as backwardation.
From MarketWatch
“At the moment, the VIX is not trading above the 3-month VIX index, meaning the market has not yet flipped into backwardation. That suggests implied volatility is rising across the curve, but we have not seen a true crescendo of fear,” Kramer says.
From MarketWatch
That leaves the “futures duration curve in a steep backwardation dynamic” — meaning the current price is higher than prices for contracts for delivery further out in the future, Richey told MarketWatch.
From MarketWatch
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
