Noun

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

   1991: gold has never gone into backwardation in any currency — Reginald H. Howe, The Golden Sextant http://www.goldensextant.com/goldensextant.html

1. 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.