Contango

[kәn'tæŋgәu]

Definition

(n.) The premium or interest paid by the buyer to the seller, to be allowed to defer paying for the stock purchased until the next fortnightly settlement day.

(n.) The postponement of payment by the buyer of stock on the payment of a premium to the seller. See Backwardation.

Editor: Matt

Definition

n. a percentage paid by the buyer to the seller of stock for keeping back its delivery to the next settling-day continuation—opp. to Backwardation.

Checker: Sondra