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. 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

Example Sentences

Prompt Brent and WTI inter-month spreads are in slight contango.

From Reuters

Front-month prices are lower than those in future months in a contango market, signalling sufficient supplies.

From Reuters

Oil prices have dropped by almost 20% since late September while prompt inter-month spreads for Brent and WTI slipped into contango last week.

From Reuters

In a contango market prompt prices are lower than those in future months, signalling sufficient supply.

From Reuters

In a contango market prompt prices are lower than those in future months, signalling sufficient supply.

From Reuters