Glossary › contango
Trading glossary · advanced
contango
When a deal to buy something later costs more than a deal for sooner, so waiting costs extra.
The fuller meaning
A futures curve in which later contracts are priced above nearer ones, often reflecting storage and financing costs. A long position that keeps rolling forward tends to lose value, buying a pricier contract each time, and can fall behind the spot price even when spot is flat.
contango.
Related words
at the money · backtest · backwardation · basis · call option · data snooping · delta · edge · entry trigger · exercise