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".
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