contango definition

contango

Commodities: Common market situation where the prices get progressively higher in the future delivery months, reflecting carrying costs and creating negative spreads. Opposite of backwardation.

Securities: Carry-over of the settlement of an account on stock exchange to a future period. Such postponement requires payment of interest on the amount carried over.

contango is in the Commodities & Precious Metals Trading and Securities & Futures Trading subjects.

contango appears in the definitions of the following terms: backwardation and basis

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