Contango is a futures market term that describes a normal market condition of expected rising prices in succeeding months. In a market that is in contango, prices are progressively higher for each listed futures month of a contract. Contango is the opposite of backwardation.
Other Meanings and Etymology
Originally, contango was defined as a fee paid by a stock buyer to the seller in order to postpone the delivery of the stock to a future date. The etymology of the word is not clear, but is assumed to be a corruption or mis-pronunciation of the word "continue".
- ↑ Oil speculation: It's back. Fortune.
- ↑ Contango - What's in a name?. Contango Oil & Gas Company.
- ↑ Glossary of Terms. U.S. Commodity Futures Trading Commission.
- ↑ Contango Lessons. Middle East Economic Survey.
- ↑ Peak Oil Contango?. The Oil Drum.
- ↑ Totally Weird and Wonderful Words. Mantex.
- ↑ James Mitchell, "Significant Etymology; Or, Roots, Stems, and Branches of the English Language.". Google Book Search.