Meaning
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.
Etymology
Origin: Unknown
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.
Synonyms & Antonyms
Synonyms
forwardation
Antonyms
backwardation
NYT Puzzle Appearances
No published puzzle dates on file for this word yet. It is part of the official NYT Spelling Bee word list for 2024, 2025.