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CONTANGO

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Originally appearing in Volume V07, Page 24 of the 1911 Encyclopedia Britannica.
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CONTANGO , a Stock See also:

Exchange See also:term for the See also:rate of See also:interest paid by a See also:bull who has bought stock for the rise and does not intend to pay for it when the See also:Settlement arrives. He arranges to carry over or continue his bargain, and does so by entering into afresh bargain with his seller, or some other party, by which he sells the stock for the Settlement and See also:buys it again for the next, the See also:price at which the bargain is entered being called the making-up price. The rate that he pays for this See also:accommodation, which amounts to borrowing the See also:money involved until the next Settlement, is called the contango.

End of Article: CONTANGO

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