contango

American  

[kuhn-tang-goh] / kənˈtæŋ goʊ /

noun

contangos, plural contangoes plural

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

Other Word Forms

Inflected Forms

noun

• contangoes
  plural
• contangos
  plural

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

“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 • Mar. 13, 2026

Usually, VIX futures are higher than the VIX to reflect the extra risk of holding a longer-duration contract, a condition known as contango.

From MarketWatch • Jan. 22, 2026

Morning losses accelerated as the market approached contango, where prices for nearby months are below those of later dates, adding a technical aspect to the selling.

From The Wall Street Journal • Nov. 13, 2025

Oil futures recently slipped into a trading pattern known as contango, where oil delivered today is worth less than oil delivered several months from now.

From Barron's • Oct. 22, 2025

The rate that he pays for this accommodation, which amounts to borrowing the money involved until the next Settlement, is called the contango.

From Encyclopaedia Britannica, 11th Edition, Volume 7, Slice 2 "Constantine Pavlovich" to "Convention" by Various