contango

[ kuhn-tang-goh ]

noun

, plural con·tang·os, con·tang·oes.

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

contango

/ 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. See backwardation
   Also calledcarry-overcontinuation the fee paid for such a postponement Compare backwardation

verb

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

   my brokers will contango these shares

Word History and Origins

Origin of contango¹

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

Word History and Origins

Origin of contango¹

C19: apparently an arbitrary coinage based on continue