(formerly, on the London Stock Exchange) postponement of payment for and delivery of stock from one account day to the next
2. Also called: carry-over, continuation
the fee paid for such a postponement
Compare backwardation
verbWord forms: -goes, -going or -goed
3. (transitive)
to arrange such a postponement of payment (for)
my brokers will contango these shares
Word origin
C19: apparently an arbitrary coinage based on continue
contango in Finance
(kəntæŋɡoʊ)
noun
(Finance: Investment)
Contango is a situation in which the price of a forward or futures contract is trading above the expected spot price when the contract matures.
Contango is the term applied when the contract price promised in a futures market upon deliveryof an item is higher the more distant in time the delivery will occur.
A contango is observed when the futures price is higher than the spot or cash price.
Contango is a situation in which the price of a forward or futures contract is trading abovethe expected spot price when the contract matures.
Word originsThis word originated in 19th century England, and is believed to be a corruption ofthe word "continue" or "contingent".