contango
Definition 1
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.
Definition 2
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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