contango
From WikiWord, the free dictionary
English
Definitions
noun
- The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery.
- The amount by which prices for future delivery are higher than prices for near delivery.
- (London Stock Exchange) Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.
verb
- (London Stock Exchange) To charge (a buyer) a fee to defer settlement until the next settlement day.
Related words
Synonyms
forwardationcontango daybackwardationfutures marketspreadforward marketforward contractfutures contractforwardspot marketlongingcontingencyoverhangspeculationindicationlong positionnegative pickup