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

“The curve is flirting with contango, and that alone will feed on itself, once it starts to get going and it becomes pretty abject.”

From The Wall Street Journal

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

“I do think it’s going to flip into contango. Cargos are begging out there for bids and it’s not going all that great,” Kilduff adds.

From The Wall Street Journal

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

But contango tends to be bearish.

From Barron's