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LSDefine

Simple English definitions for legal terms

backwardation

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A quick definition of backwardation:

Backwardation: When someone sells something but needs more time to deliver it, they may have to pay a fee to the buyer. This fee is called backwardation. It's like a penalty for not delivering on time.

Backwardation is often used in the securities market, where buyers and sellers trade stocks and bonds. If a seller can't deliver the securities on the agreed-upon date, they may have to pay backwardation to the buyer. This helps ensure that the buyer doesn't lose money because they couldn't get the securities they wanted when they wanted them.

Overall, backwardation is a way to make sure that transactions are fair and that everyone gets what they need. It's like a way of saying "sorry" when things don't go according to plan.

A more thorough explanation:

Definition: Backwardation is a fee paid by the seller of securities to the buyer to allow delivery after the original delivery date.

For example, if a seller of oil futures contracts cannot deliver the oil on the agreed-upon date, they may pay a fee to the buyer to extend the delivery date. This fee is known as backwardation.

Another example is in the stock market. If the price of a stock for future delivery is lower than the current price, it is said to be in backwardation. This means that investors are willing to pay a premium to receive the stock now rather than in the future.

Backwardation is a way for sellers to avoid defaulting on their delivery obligations and for buyers to receive compensation for the delay in delivery.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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