| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
Contango
Definition 1.
A market condition in which futures prices are higher in the distant delivery months.
|
Definition 2.
When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date.
|
Definition 3.
A condition in which distant delivery prices for futures exceed spot prices, often due to the costs of storing and insuring the underlying commodity. opposite of backwardation.
|
|
|