Contango Definition
kən-tănggō
noun
A state in which the price of a futures contract is higher than the eventual or expected spot price of the underlying commodity or security.
American Heritage
Other Word Forms of Contango
Noun
Singular:
contango
Plural:
contangosOrigin of Contango
-
The term originated in mid-19th century England, and is believed to be a corruption of continuation, continue or contingent. In the past on the London Stock Exchange, contango was a fee paid by a buyer to a seller when the buyer wished to defer settlement of the trade they had agreed. The charge was based on the interest forgone by the seller not being paid.
From Wiktionary
Probably alteration of 19th-century stock-exchange jargon continuation the carrying over of an account until the next designated date of settlement
From American Heritage Dictionary of the English Language, 5th Edition
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