Contango

Quick meaning: Contango is a noun meaning The amount by which prices for future delivery are higher than prices for near delivery.

Meaning

The amount by which prices for future delivery are higher than prices for near delivery.

More Meanings

1. The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery, indicating the expectation that the price of the underlying asset will go up.
2. (obsolete, London Stock Exchange, ambitransitive) To charge (a buyer) a fee to defer settlement until the next settlement day.
3. (obsolete, London Stock Exchange) Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.

Example Sentences

most of these other commodities are generally in contango

Normally new buyers would go after the March silver contract, especially with such a small contango.

Yesterday was Settling Day in Consols, and Monday next the Settling of Omnium. Owing to the great scarcity of money, the Contango on both is extremely great, nearly equal to 15 per cent. for money, from account to account.

Word Forms

• contangos
• contangoes
• contangoing
• contangoed

Synonyms for contango

Depending on context, synonyms include forwardation.

Antonyms for contango

Common opposites include backwardation.

Related Words

Related dictionary entries include backwardation, spread, forward, longing, contingency, overhang.

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