contango

noun

1. (countable, uncountable)The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery, indicating the expectation that the price of the underlying asset will go up.

   “most of these other commodities are generally in contango”

2. (countable, uncountable)The amount by which prices for future delivery are higher than prices for near delivery.

   “Normally new buyers would go after the March silver contract, especially with such a small contango.”

3. (countable, obsolete, uncountable)Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.

   “Yesterday was Settling Day in Consols, and Monday next the Settling of Omnium. Owing to the great scarcity of money, the Contango on both is extremely great, nearly equal to 15 per cent. for money, from account to account.”

verb

1. (ambitransitive, obsolete)To charge (a buyer) a fee to defer settlement until the next settlement day.