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Glossary Term: CONTANGO (SEE ALSO BACKWARDATION)

Definition(s) for CONTANGO (SEE ALSO BACKWARDATION):

1. ) A term often used in commodities or futures markets to refer to markets in which longer-term contracts carry a higher price than near-term contracts. The premium accorded to longer maturities is a normal condition of the market and reflects the cost of carrying the commodity for future delivery. See also backwardation.


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