Contango

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Contango

A market condition in which futures prices are higher in the distant delivery months.

Contango

A situation in which the futures price for an asset is higher than the expected future spot price. The futures price in contango declines to the future spot price as the futures contract approaches maturity. See also: Backwardation, Keynesian economics.

contango

In futures or options trading, a market in which longer-term contracts carry a higher price than near-term contracts. The premium accorded to longer maturities is a normal condition of the market and reflects the cost of carrying the commodity for future delivery. Compare inverted market.

Contango.

The price of a futures contract tends to reflect the cost of storage, insurance, financing, and other expenses incurred by the producer as the commodity awaits delivery.

So, typically, the further in the future the maturity date, the higher the price of the contract. That relationship is described as contango.

If the opposite is true, and the price of a longer-term contract is lower than the price of one with a closer expiration date, the relationship is described as backwardation.

contango

  1. an additional payment made by an investor or speculator who has purchased or sold a SHARE, STOCK etc. on the UK STOCK MARKET in return for being permitted to carry over the settlement of the share transaction from one ACCOUNT PERIOD to the next.
  2. a condition in a FORWARD MARKET where the most distant delivery months trade at a premium to the near term delivery months.
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The best practice continuation agreements specify all the details of the purchase: who will buy, what they will buy, what they will pay and how the transition will work," says Reeb.
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New York State Continuation is similar to COBRA in many ways, such as notice requirements.
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ERIC Descriptors: Academic Achievement; Learner Engagement; Outcome Measures; Outcomes of Education; Nontraditional Education; High Schools; Continuation Students; Difficulty Level; Principals; Secondary School Teachers; Educational Finance; Financial Support; Educational Objectives; Goal Orientation; Educational Environment; Educational Administration; Repetition; Required Courses; Curriculum Design; Instructional Design; School Districts; Program Implementation
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