noun | kuhn·tang·goh and bak·wuhr·dey·shn
Two different states of a futures market, where the price of a futures contract is either higher or lower than the expected spot price at the time of expiration. It's like a choose-your-own-adventure book, except instead of deciding whether to fight the dragon or save the princess, you're deciding whether to go long or short on a bunch of commodities you've never even heard of.
Example
"Backwardation is like when you're so drunk you start walking backwards and then fall on your ass in front of everyone at the party. Contango is like when you're so drunk you think you can dance like Michael Jackson, but you just end up looking like a sad, flailing mess. Either way, you're gonna wake up the next morning feeling like shit and regretting all your life choices."
"I tried to explain contango and backwardation to my dog, but he just looked at me like I was an idiot and then went back to licking his own balls. I guess some things are just too complex for mere mortals (and dogs) to understand."
