contango
Pronunciation: /kənˈtaŋgəʊ/
noun
- the normal situation in which the spot or cash price of a commodity is lower than the forward price. Often contrasted with backwardation.
- historical a percentage paid by a buyer of stock to postpone transfer to a future settling day.
Origin:
mid 19th century: probably an arbitrary formation on the pattern of Latin verb forms ending in -o in the first person singular, perhaps with the idea 'I make contingent' (see contingent)