subs. phr. (stock exchange).—See quots. and cf. CONTANGO. Also BACKWARDIZATION.

1

  1850.  H. KEYSER, The Law Relating to Transactions on the Stock Exchange, 29. The term BACKWARDATION is employed when stock is more in demand than money, and a premium is given to obtain the loan of stock against its value in money.

2

  c. 1860.  C. FENN, Compendium of the English and Foreign Funds, etc. (1883), 127. ‘BACKWARDATION’ is paid by the speculator for the fall, or the Bear, in order to postpone delivery until the following account.

3

  1865.  Public Opinion, 18 Nov., 541. 2. ‘BACKWARDIZATION’ expresses … the sum which a seller pays for not being obliged to deliver the shares at the time before agreed upon, but to carry them over to the following account.

4

  1880.  Society, 3 Sept., 16.

        The Bear a good contango loves,
The Bull a BACKWARDATION.

5

  1883.  Pall Mall Gazette, 11 Sept., 9. 2. At the opening 1/4 BACKWARDATION to 1/4 contango was charged.

6

  1886.  Daily News, 14 Dec., 6. 1. The 1873 loan is, on balance, about 5/8 lower, at 94, after being 931/2. The BACKWARDATION on the stock, went off at the close.

7