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Definition of Backwardation:

  1. 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.

Usage examples:

  • Backwardation, 146. Bagehot, W., 18, 37, 540, n.

    - "The Value of Money", Benjamin M. Anderson, Jr..