Wiktionary:Word of the day/2023/January 9

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Word of the day
for January 9
backwardation n (stock market)
  1. 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. The situation in a stock market where the offer price for stock is lower than the bid price.
  3. (obsolete) 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.
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