Contango
Pronunciation: /ˈkɑnˈtæŋɡoʊ/
Contango (noun)
- A situation where the future price of a commodity is higher than its current price.
Examples
- In a contango market, future prices exceed current prices.
- Traders often benefit from contango when holding contracts.
Common collocations: contango market, enter contango, contango situation