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Meaning of backwardation

back•ward•a•tion

Pronunciation: (bak"wur-dā'shun), [key]
— n.
  1. (on the London stock exchange) the fee paid by a seller of securities to the buyer for the privilege of deferring delivery of purchased securities.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.