Definition
contangos
noun
- Plural of contango; a situation in futures or commodity markets where the price of a contract for future delivery is higher than the spot price, or where longer-dated contracts are more expensive than nearer-dated ones.
Usage: finance; commodities trading
Examples
- Oil contangos have widened significantly as storage costs increase.
- The gold market is in contangos, reflecting expectations of future price increases.
- Traders profit from contangos by buying spot and selling futures contracts.
- Steep contangos in the energy sector discourage physical inventory accumulation.
- The contangos in agricultural futures suggest ample supply expectations.