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.


Nearby Terms

Search volume for contango

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z