Noun
/kənˈtæŋɡoʊ/
Contango is a term primarily used in finance and trading to describe a situation in which the future price of a commodity is higher than the expected spot price. This often occurs in futures markets, where long-term contracts trade at a premium compared to nearby contracts.
Frequency of Use: The term "contango" is quite specialized and mostly used in financial discussions, particularly in commodity trading contexts. It has a higher frequency of use in written financial analysis and reports compared to oral speech, although it may occasionally come up in discussions among finance professionals.
"The market was in contango, indicating that investors expected prices to rise in the future."
"El mercado estaba en contango, lo que indicaba que los inversores esperaban que los precios subieran en el futuro."
"A contango situation can create challenges for investors holding long positions."
"Una situación de contango puede crear desafíos para los inversores que tienen posiciones largas."
"Understanding contango is crucial for anyone involved in futures trading."
"Entender el contango es crucial para cualquiera que esté involucrado en el comercio de futuros."
While "contango" itself is not a commonly used word in idiomatic expressions, it is related to concepts in trading that may appear in various contexts. Here are a few idiomatic expressions related to trading and the commodities market:
"Riding the contango wave can lead to significant profits if done correctly."
"Surfear la ola del contango puede llevar a ganancias significativas si se hace correctamente."
"In a contango market, the long game is often more lucrative."
"En un mercado en contango, generalmente, el juego a largo plazo es más lucrativo."
"Traders must navigate the intricacies of contango to maximize their returns."
"Los traders deben navegar por las complejidades del contango para maximizar sus retornos."
"When markets are in contango, patience pays off for the savvy investor."
"Cuando los mercados están en contango, la paciencia recompensa al inversor astuto."
"A savvy trader knows how to capitalize on contango and backwardation."
"Un trader astuto sabe cómo capitalizar el contango y la backwardation."
The word "contango" appears to originate from the London Stock Exchange, dating back to the 19th century. It is believed to be a variation of "contingent," which reflects the idea that prices are contingent upon future expectations. The term encapsulates the relationship between future and spot prices in commodity trading.
Synonyms: - Price premium - Long-term expectation
Antonyms: - Backwardation (the situation where future prices are lower than spot prices)