Futures Trading Terms Glossary

CONTANGO

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

C

Contango×

A condition when the front month prices are lower than the back month prices. This is normal for most markets because back months include carrying costs (interest, storage, etc). The opposite of Backwardation.