Futures · Pro
Contango
What does Contango mean?
Contango describes a futures pricing relationship in which a later maturity trades above a nearer reference, often producing an upward-sloping futures curve. The comparison must specify its dates or spot reference.
Example
A nearby contract trades at 80 while a later maturity trades at 82.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
The spread can reflect carrying costs and market conditions. It does not guarantee that the underlying spot price will rise.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.