Front Month
Contents
Unveiling Front Month: Exploring Futures and Options Contracts
Understanding front month contracts is essential for investors navigating the futures and options market. Discover what front month means, how it affects trading, and its significance in commodity markets.
Deciphering Front Month
Front month, also known as near or spot month, refers to the closest expiration date for futures or options contracts. Dive into the intricacies of front month contracts and their impact on trading strategies.
Front Month Dynamics
Front month contracts are typically the most heavily traded and liquid contracts, making them essential for market participants. Explore how the spread between front month futures prices and spot prices evolves over time, affecting trading decisions.
Expiration Months
Futures contracts feature different expiration months based on specific market dynamics. Learn how different markets determine expiration months and why selecting the right expiration month is crucial for trading strategies.
Backwardation and Contango
Understand the concepts of backwardation and contango and their implications for commodity futures trading. Explore how market conditions influence the shape of futures curves and trading strategies.
Front Month in Action
Explore a real-world example of front month trading in crude oil futures. Follow a day trader's journey as they navigate the complexities of front month contracts and attempt to profit from market volatility.