Con*tan"go (k&obreve;n*tă&nsm;"g&osl;), n.; pl. Contangoes (#). [Prob. a corruption of contingent.] 1. (Stock Exchange) The premium or interest paid by the buyer to the seller, to be allowed to defer paying for the stock purchased until the next fortnightly settlement day. [Eng.]

2. (Law) The postponement of payment by the buyer of stock on the payment of a premium to the seller. See Backwardation. N. Biddle.

• the situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery.
        2005: most of these other commodities are generally in contango — Futures Industry Magazine
  
• the amount by which prices for future delivery are higher than prices for near deliver.
        2003: Normally new buyers would go after the March silver contract, especially with such a small contango. — Bill Murphy, Kitco Bullion Dealers
  
• (obsolete, London Stock Exchange) fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day