noun.
A state in which the price of a futures contract is lower than the eventual or expected spot price of the underlying commodity or security.
The Century Dictionary and Cyclopedia
noun.
On the London Stock Exchange, the premium paid by a seller of stock for the privilege of postponing its delivery to the buyer until the next fortnightly settling-day. See contango.
the GNU version of the Collaborative International Dictionary of English
noun.
The seller's postponement of delivery of stock or shares, with the consent of the buyer, upon payment of a premium to the latter; -- also, the premium so paid. See contango.
noun.
The situation in a futures market where prices for future delivery are lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity.
noun.fee paid by a seller on settlement day either to the buyer or to a third party who lends stock, when the seller wishes to defer settlement until the next settlement day.