Adjective "contangos" definition and examples

(Contangos may not be an adjective, but it can be used as an adjective, click here to find out.)

Pronunciation

/kənˈtaŋɡəʊ/

Advertisement

Definitions and examples

noun

The normal situation in which the spot or cash price of a commodity is lower than the forward price.
  1. 'The $450 break was done in the February 05 contract (which puts the market in a contango - it used to be held in backwardation).'
  2. 'On the other hand, oil has been in contango for most of the last year but the price has been in a gradual uptrend.'
  3. 'Bear in mind that hedging had its value in maximising income in a falling market, with high contangos, neither of which, if current sentiment persists, are likely to be present for a while.'
  4. 'We believe there will be some hedging from producers as high prices and contangos start to interest them in securing some profits.'
  5. 'In addition, underperformance by the stocks of heavily hedged producers, rising gold prices and materially lower contangos have reduced the incentive to hedge.'

More definitions

1. (on the London stock exchange) a fee paid by a buyer of securities to the seller for the privilege of deferring payment.

More examples(as adjective)

"sales can be contangos."

Origin

(contango)Mid 19th century: probably an arbitrary formation on the pattern of Latin verb forms ending in -o in the first person singular, perhaps with the idea ‘I make contingent’ (see contingent).