CONTANGO

By SovConn | June 15, 2014

contango (k<<schwa>>n-tang-goh).Securities. 1. A market in which long-term futures or options contracts sell at a premium over short-term contracts. — Also termed normal market. 2. The premium so paid. • The premium paid for securities with longer maturities reflects the cost of holding the commodity for future delivery. [Blacks Law 8th]

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