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Definition of "contango" []

  • The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery. (noun)
  • The amount by which prices for future delivery are higher than prices for near delivery. (noun)
  • Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day. (noun)

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Use "contango" in a sentence
  • "That increase from contract to contract is called contango, and it can cut into fund returns."
  • "In commodities lingo, the trading pattern is called contango."
  • "However, the company on Monday admitted that like other independent refiners, second-quarter results will be pressured by low margins amid increased crude costs and a contraction in a trading benefit known as contango, which in the first quarter helped earnings."