Contango
Contango describes a futures market where prices for later delivery are higher than those for nearer delivery, often alongside futures prices above spot. Storage, financing and other carrying costs can contribute to this pattern; it does not guarantee that the future spot price will rise.
In a hypothetical oil futures market, the nearer contract trades at USD 70 per barrel and a later contract at USD 73, illustrating contango.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure