Standard Lemma guide
Definitions and examples are grouped by meaning. Pronunciation, history, word forms, translations, descendants, synonyms, antonyms, derived terms, and related words appear whenever the source provides them.
Sound
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noun
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.
Definition source: English Wiktionary via Wiktextract
Usage: countable, uncountable
No example sentence was provided for this meaning.
Synonyms: none provided
Antonyms: none provided
noun
The amount by which prices for future delivery are higher than prices for near delivery.
Definition source: English Wiktionary via Wiktextract
Usage: countable, uncountable
No example sentence was provided for this meaning.
Synonyms: none provided
Antonyms: none provided
noun
Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.
Definition source: English Wiktionary via Wiktextract
Usage: countable, obsolete, uncountable
Qualifier: London Stock Exchange
No example sentence was provided for this meaning.
Synonyms: none provided
Antonyms: none provided
verb
To charge (a buyer) a fee to defer settlement until the next settlement day.
Definition source: English Wiktionary via Wiktextract
Usage: ambitransitive, obsolete
Qualifier: London Stock Exchange
No example sentence was provided for this meaning.
Synonyms: none provided
Antonyms: none provided
History
The term originated in early-19th-century England, and is believed to be a corruption of continuation, continue or contingent. In the past on the London Stock Exchange, contango was a fee paid by a buyer to a seller when the buyer wished to defer settlement of the trade they had agreed. The charge was based on the interest forgone by the seller not being paid.
