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| con·tan·go [ kən táng gō ] |
noun (plural con·tan·gos) |
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| Definition: |
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1. basic pricing system in futures trading: in futures and options trading, a system of pricing whereby longer-term contracts are priced higher than near-term contracts. The higher price on the longer-term contracts is a result of the cost of carrying those commodities for future delivery.
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2. U.K. interest payable when delivery delayed: interest payable by a broker when the delivery of and payment for stock is postponed
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3. U.K. postponement of stock delivery: formerly, on the London Stock Exchange, the postponement of the delivery of stock to a broker and payment for it, from one account day to the next
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transitive verb |
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| Definition: |
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U.K. arrange contango: to arrange for delivery and payment to be postponed when transferring stock in a stock exchange
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| [Mid-19th century. Origin ?] |
