Contango

Word CONTANGO
Character 8
Hyphenation con tan go
Pronunciations N/A

Definitions and meanings of "Contango"

What do we mean by contango?

A state in which the price of a futures contract is higher than the eventual or expected spot price of the underlying commodity or security. noun

On the London stock exchange, the charge made by a broker for carrying over a bargain to the next fortnightly settling-day; the consideration paid by the buyer of stock for the privilege of deferring settlement until the next settling-day. noun

The premium or interest paid by the buyer to the seller, to be allowed to defer paying for the stock purchased until the next fortnightly settlement day. noun

The postponement of payment by the buyer of stock on the payment of a premium to the seller. See Backwardation. noun

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

The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery.

The amount by which prices for future delivery are higher than prices for near delivery.

(London Stock Exchange) Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.

Synonyms and Antonyms for Contango

  • Synonyms for contango
  • Contango synonyms not found!!!

The word "contango" in example sentences

That increase from contract to contract is called contango, and it can cut into fund returns. ❋ Liam Pleven (2011)

In commodities lingo, the trading pattern is called contango. ❋ Dan Strumpf (2011)

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. ❋ Unknown (2009)

A key dimension to continued pressure for higher prices is coming from various commodity funds trying to maintain a near-term contango in the futures market. ❋ Oxford Analytica (2006)

George Gero, vice president with RBC Capital Markets Global Futures, said September copper has a premium over the next-most-active July contract beyond normal "contango" -- where farther-out prices are higher because of costs including storage. ❋ Unknown (2009)

The forward curve for Nymex crude prices currently slopes upward -- known as a "contango" -- and is extraordinarily steep. ❋ Unknown (2008)

The crude futures market is now in what oil traders call a "contango" - in which oil delivered in the next few weeks is cheaper than in the following months. ❋ Unknown (2009)

This leaves ETFs more prone to so-called contango effects, as well as vulnerable to tax hits and front-running — when traders can jump ahead of expected trades to profit from the subsequent demand. ❋ Sam Mamudi (2011)

Many advisers recommend against oil ETFs, which suffer from a market malady known as "contango." ❋ Ben Levisohn (2011)

The expiring ones are usually worth less than the new ones—a condition known as "contango"—so they lose money with each roll. ❋ Ben Levisohn (2011)

Grice, Bernstein and others point out, are exposed to the additional risk that when monthly contracts expire, they will need to be replaced with new futures contracts that are more expensive, a phenomenon known as contango that has often prevailed in recent years. ❋ Liam Pleven (2011)

Stock prices, for example, are often influenced by broader moves in the equities markets, while ETFs can veer off course when prices for futures contracts are more expensive for later months than closer months, a trading pattern known as contango. ❋ Jerry A. DiColo (2011)

When those new contracts are more expensive, a situation called contango, returns can suffer substantially. ❋ Liam Pleven (2011)

They can face a drag on returns known as "contango," in which the price for longer-dated futures contracts is higher than those of closer months. ❋ Eleanor Laise (2011)

If you go to the Comex website and scan the range of prices over the next 12 months, you can see this phenomenon (called contango) in action. ❋ Unknown (2010)

This situation is known as contango, where oil-market participants buy physical barrels and sell them forward at a higher price. ❋ Unknown (2009)

But the oil companies have been able to partly compensate for the low oil price by taking advantage of a crude market that since October has been in what's called contango, a price structure where near-term contracts are cheaper than contracts for delivery in the future. ❋ Unknown (2009)

This condition, known as contango, suggests that producers aren't quite bullish on the industry, which runs counter to the hopes of investors. ❋ Unknown (2009)

Bloomberg News Some take hope from the upward slope of the oil-futures curve, known as contango, interpreting it as indicating higher prices ahead. ❋ Unknown (2009)

Cross Reference for Contango

What does contango mean?

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