noun, plural contangos, contangoes.
(on the London stock exchange) a fee paid by a buyer of securities to the seller for the privilege of deferring payment.
Also called continuation.
Compare backwardation.

1850–55; said to be alteration of continue or contingent Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
contango (kənˈtæŋɡəʊ)
n , pl -gos
1.  (formerly, on the London Stock Exchange) postponement of payment for and delivery of stock from one account day to the next
2.  Compare backwardation carry-over, Also called: continuation the fee paid for such a postponement
vb , -gos, -goes, -going, -goed
3.  (tr) to arrange such a postponement of payment (for): my brokers will contango these shares
[C19: apparently an arbitrary coinage based on continue]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1853, a stockbroker's invention, somehow derived from continue. As a verb, from 1900.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
Futures prices for physical commodities are thus typically higher than spot prices, a situation known as contango.
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