contango definition

  • noun:
    • The situation in a futures market in which costs for future delivery are greater than prices for immediate (or nearer) distribution.
    • The amount where costs for future delivery tend to be more than charges for almost distribution.
    • Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.
    • The premium or interest paid by the buyer to your vendor, to-be allowed to defer spending money on the stock purchased before the after that fortnightly settlement time.
    • The postponement of payment by the customer of stock from the payment of reduced to your seller. See Backwardation.
    • regarding London stock-exchange, the cost made by a broker to carry over a bargain to the next fortnightly settling-day; the consideration compensated by the buyer of stock the privilege of deferring settlement before next settling-day.

Related Sources

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