backwardation

noun

1. (countable, uncountable)In full normal backwardation: the situation in a futures market where the price for future delivery of a commodity (the forward price) is lower than the price for immediate delivery (the spot price) or nearer delivery, generally arising from a near-term shortage of the commodity.
2. (countable, uncountable)A situation in which short-term interest rates are higher than long-term interest rates.
3. (countable, uncountable)The situation in a stock market where the offer price for stock is lower than the bid price.
4. (countable, obsolete, uncountable)In the London Stock Exchange: a fee paid by a seller on settlement day either to the buyer or to a third party who lends stock, when the seller wishes to defer settlement until the next settlement day.