contango

Definition

A condition in which distant delivery prices for futures exceed spot prices, often due to the costs of storing and insuring the underlying commodity. opposite of backwardation.

Use contango in a sentence

You may find that you are in a state of contango and will need to find a way to work around it.

​ Was this Helpful? YES  NO 4 people found this helpful.

I did not like contango cause I knew it meant that more money would be spent than needed to be by us.

​ Was this Helpful? YES  NO 9 people found this helpful.

The contango was counter intuitive but was logical due to the distance between now and the delivery date of the contract.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Related Terms

Mentioned in these terms

Browse Definitions 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
contagion effects contango day