How Do You Spell CONTANGO?

Pronunciation: [kəntˈaŋɡə͡ʊ] (IPA)

Contango is a term that arises in the financial market. It refers to the amount of money paid by an investor in order to hold onto a commodity, such as oil or precious metals, for a specific period of time. The term is spelled phonetically as /kɒnˈtæŋɡəʊ/, with the emphasis on the second syllable. It is derived from the Italian word "contare," which means to count or to calculate. The spelling of the word is peculiar, and this has led to some confusion amongst those not familiar with its use.

CONTANGO Meaning and Definition

1. Contango is a financial term used to describe a situation in which the price of a futures contract is higher than the expected future spot price of the underlying asset. It is commonly used in commodities and derivatives markets.

   In a contango market, the futures price exceeds the expected spot price as a result of factors such as carrying costs, storage expenses, and interest rates. This typically occurs when there is high demand for the asset or when there are concerns about future supply shortages.

   Traders and investors can exploit contango by buying futures contracts at lower prices and selling them when the prices converge. This strategy allows them to profit from the price difference between the futures price and the spot price.

   Contango can also occur in financial markets, particularly in the case of interest rates. It refers to a situation where the future price of a financial instrument or currency is higher than its spot price, which indicates expectations of rising interest rates in the future.

   However, contango can have drawbacks for investors, especially if they hold futures contracts over a prolonged period. They may face losses due to the cost of carrying the asset, such as storage expenses or negative roll yield.

   Overall, contango is an important concept for traders and investors to understand as it can offer opportunities for profit, but also comes with associated risks and expenses.

Common Misspellings for CONTANGO

• contagio
• xontango
• vontango
• fontango
• dontango
• cintango
• ckntango
• clntango
• cpntango
• c0ntango
• c9ntango
• cobtango
• comtango
• cojtango
• cohtango
• conrango
• confango
• congango
• conyango
• con6ango

Etymology of CONTANGO

The term "contango" originates from the early 19th century and has its roots in the commodity markets, particularly in the trading of futures contracts. It is derived from the Italian word "contangere", which can be broken down into "con" meaning "with" and "tangere" meaning "to touch".

The concept of contango emerged as a way to describe the characteristic upward sloping shape of the futures price curve in the commodities market. In a contango situation, the futures price of a commodity is higher than its expected spot price at the time of delivery. This means that market participants are willing to pay more for a commodity delivered in the future, anticipating a rise in its value or cost of carry.

Over time, the term "contango" has extended beyond the commodity markets and is now used in various financial contexts where forward pricing is involved.

Plural form of CONTANGO is CONTANGOS

Conjugate verb Contango

CONDITIONAL

I would contango

you would contango

he/she/it would contango

we would contango

they would contango

CONDITIONAL CONTINUOUS

I would be contangoing

you would be contangoing

he/she/it would be contangoing

we would be contangoing

they would be contangoing

CONDITIONAL PERFECT

I would have contango

you would have contango

he/she/it would have contango

we would have contango

they would have contango

CONDITIONAL PERFECT CONTINUOUS

I would have been contangoing

you would have been contangoing

he/she/it would have been contangoing

we would have been contangoing

they would have been contangoing

FUTURE

I will contango

you will contango

he/she/it will contango

we will contango

they will contango

FUTURE CONTINUOUS

I will be contangoing

you will be contangoing

he/she/it will be contangoing

we will be contangoing

they will be contangoing

FUTURE PERFECT

I will have contangoed

you will have contangoed

he/she/it will have contangoed

we will have contangoed

they will have contangoed

FUTURE PERFECT CONTINUOUS

I will have been contangoing

you will have been contangoing

he/she/it will have been contangoing

we will have been contangoing

they will have been contangoing

IMPERATIVE

you contango

we let´s contango

NONFINITE VERB FORMS

to contango

PAST

I contangoed

you contangoed

he/she/it contangoed

we contangoed

they contangoed

PAST CONTINUOUS

I was contangoing

you were contangoing

he/she/it was contangoing

we were contangoing

they were contangoing

PAST PARTICIPLE

contangoed

PAST PERFECT

I had contangoed

you had contangoed

he/she/it had contangoed

we had contangoed

they had contangoed

PAST PERFECT CONTINUOUS

I had been contangoing

you had been contangoing

he/she/it had been contangoing

we had been contangoing

they had been contangoing

PRESENT

I contango

you contango

he/she/it contangoes

we contango

they contango

PRESENT CONTINUOUS

I am contangoing

you are contangoing

he/she/it is contangoing

we are contangoing

they are contangoing

PRESENT PARTICIPLE

contangoing

PRESENT PERFECT

I have contangoed

you have contangoed

he/she/it has contangoed

we have contangoed

they have contangoed

PRESENT PERFECT CONTINUOUS

I have been contangoing

you have been contangoing

he/she/it has been contangoing

we have been contangoing

they have been contangoing