BACKWARDATION Definition

BACKWARDATION is the commission paid by a seller for the postponement of a transaction on a stock exchange when prices for cash delivery are higher than for forward delivery.

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PROMISES FOR THE FUTURE is not a standard term, but is sometimes used in contracts to delineate what orders/commitments may exist in the future. Dependent upon the contractual language, it may or may not be binding.

INSTITUTIONAL INVESTOR is a bank, mutual fund, pension fund, or other corporate entity that trades securities in large volumes.

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