contango

American  

[kuhn-tang-goh] / kənˈtæŋ goʊ /

noun

plural

contangos, contangoes

1. (on the London stock exchange) a fee paid by a buyer of securities to the seller for the privilege of deferring payment.

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contango British  

/ kənˈtæŋɡəʊ /

noun

1. (formerly, on the London Stock Exchange) postponement of payment for and delivery of stock from one account day to the next

2. Also called: carry-over.   continuation.  the fee paid for such a postponement Compare backwardation

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verb

1. (tr) to arrange such a postponement of payment (for)

   my brokers will contango these shares

Etymology

Origin of contango

1850–55; said to be alteration of continue or contingent

Compare meaning

How does contango compare to similar and commonly confused words? Explore the most common comparisons:

• contango vs. backwardation

Example Sentences

“So the index design has to incorporate inflation sensitivity of commodities, the shape of the commodities curve, and investing in commodities in backwardation versus contango,” he said.

From MarketWatch

Contango is the opposite situation, in which a commodity’s futures prices are higher in months and years ahead.

From MarketWatch

“The commodity landscape is littered with backwardation vs. contango trades gone bad. Now the Department of Energy is out there rolling the dice.”

From The Wall Street Journal

That left the market in sharp contango—distant prices well above those for immediate delivery.

From The Wall Street Journal

Back in 2020, when the market’s sharp contango quickly corrected itself, it seemed like investors rightly concluded that the pandemic’s effects would ease within months.

From The Wall Street Journal