Contango

(redirected from continuation)
Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia.

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.
References in periodicals archive ?
This latest continuation car follows the success of the 25 DB4 GT Continuation models that sold to enthusiast collectors in 2017, and precedes what will perhaps be the most ambitious continuation to date: the Aston Martin DB5 Goldfinger Edition cars that will come to market in 2020.
Andy Palmer, Aston Martin Lagonda president and group CEO, said: "The development and successful creation of this latest Continuation car is an achievement that should not be underestimated.
In analyses adjusted for potential confounders, compared with copper IUD users, the levonorgestrel IUD users and the implant users had higher adjusted 2-year continuation rates (incidence risk ratio, 1.08 for each).
It has been reported that continuing warfarin therapy during pacemaker implantation could be safer than interrupting treatment.9,11-14 Furthermore, recent studies have suggested that heparin bridging in patients with long-term anti-coagulation therapy may increase bleeding risk.13,15-18 Despite these findings, large randomised controlled trials (RCTs) comparing continuation or interruption of warfarin treatment during CRD implantation are still few.
filing dates, pending application status, and continuation applications.
Rothermere Continuation also proposed to DMGTa[euro](tm)s independent directors to potentially buy the rest of the companya[euro](tm)s voting stock at the same stock exchange rate as in the deal with The Esmond Harmsworth 1998 Settlement.
This view has been challenged in Corin Corely's 1987 monograph on the Second Continuation, which argued, on the ground of a study of manuscript relationships, that the first five episodes of C2 actually belonged to C1.
In Section 3, the relations between the PC homotopy continuation method and the damped Newton method are explored under the same space setting.
QNB in partnership with MetLife Alico, have designed a simple Salary Continuation Plan.
The industry has been demanding continuation of the scheme as the freeze would adversely impact their investment and modernisation plans.
30 January 2012 - US biopharmaceutical company Ziopharm Oncology Inc (NASDAQ:ZIOP) today said that the Independent Data Monitoring Committee (IDMC) had recommended continuation of its Phase III trial of Zymafos (palifosfamide) for the treatment of patients with soft-tissue cancer.
The notices of allowances are for the following patent applications: US Patent Application No 12/954,492, a continuation of US Patent No 7,864,627, entitled "Circuit for Providing Chip-Select Signals to a Plurality of Ranks of a DDR Memory Module"; US Patent Application No 13/032,470, a continuation of US Patent No 7,916,574, entitled "Circuit for Memory Module"; US Patent Application No 12/981,380, a continuation of US Patent No 7,881,150, entitled "Circuit Providing Load Isolation and Memory Domain Translation for Memory Module."