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.

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

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

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