Clarify confusion regarding futures trading months and number of back months - Commodities Futures Trading | futures io social day trading
futures io futures trading


Clarify confusion regarding futures trading months and number of back months
Updated: Views / Replies:1,598 / 15
Created: by aptare Attachments:3

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 3  
 
Thread Tools Search this Thread
 

Clarify confusion regarding futures trading months and number of back months

  #1 (permalink)
Elite Member
Seoul, South Korea
 
Futures Experience: None
Platform: None
Favorite Futures: None
 
Posts: 12 since Jan 2013
Thanks: 3 given, 2 received

Clarify confusion regarding futures trading months and number of back months

Hi, I've searched online (perhaps not with the optimal search terms?) and on the forum but haven't found a similar question. As such, I'll ask it in this thread:

I have lots of questions about two broad categories: A) the contract months jargon found in the contract specs or rulebook for futures, and B) the rule regarding the number of back months for any futures instrument.

I should be more specific regarding (A): for instance, the ES rule says "Trading months: Five months in the March Quarterly Cycle (Mar, Jun, Sep, Dec)". I see only four months (Mar, Jun, Sep, Dec), so where's the fifth month? Why call it a quarterly cycle if there is a fifth month?
Gold is also puzzling. As stated in rule 113102 for NYMEX: "Trading in Gold futures is regularly conducted in the following months: (1) the current calendar month; (2) the next two calendar months; (3) each February, April, August and October falling within a 23-month period beginning with the current calendar month; and (4) each June and December falling within a 72-month period beginning with the current calendar month. The number of months open for trading at a given time shall be determined by the Exchange." One confusion is with rule (1) for Gold futures; does not this mean that there is a Gold futures contract for every month because every month is eventually a "current" month at some point? Also, what is meant by, "The number of months open for trading at a given time shall be determined by the Exchange"? Does this mean that the number of back months is not set in stone? If so, then in practice how often do the number of back months change?
Corn futures' rule book says it trades regularly in Sept, Dec, Mar, May, and July. Are there ever months that don't fit those "regular" times? If so, is there a way to know in advance?
US bonds futures says: "...the exchange will customarily list for trading five consecutive expiries in the Mar-Jun-Sept-Dec quarterly cycle." The way I understand this is that there are only four back months and one front month at all times for US bonds. Is this correct?

Regarding subject (B), do the number of back months for a given futures instrument differ - and are there rules for each instrument? If so, where can I find these rules?

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,354 given, 83,237 received


Check threads titled roll over, expiration (those are keywords).

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #4 (permalink)
Elite Member
Seoul, South Korea
 
Futures Experience: None
Platform: None
Favorite Futures: None
 
Posts: 12 since Jan 2013
Thanks: 3 given, 2 received


Big Mike View Post
Check threads titled roll over, expiration (those are keywords).

Mike

Hi, I don't have confusion regarding rolldates or expirations. But, I checked both keywords and more than half, if not all but two or three, of the resulting threads. I didn't find what I'm looking for there.

Do indicies and financials always trade four months of the year (or are there exceptions)? Same goes with all other class of futures, e.g. metals, energies, etc. Well, not energies because that one is easy: they trade every month of the year. The reason I am confused is because in some data I found online there are exceptions. I want to know if those exceptions (e.g. an odd fifth month of trading, or even sixth month of trading for US 30-year bonds in 1980) really existed or if this is a case of corrupt data.

How many available back months are there for each class of futures? Or does that change all the time? Is it a number that is not set in stone, i.e. the exchange can change it at whim?

Should I be asking this in another forum, e.g. commodities futures trading? If so, would you move it there please?

Reply With Quote
 
  #5 (permalink)
Elite Member
Seoul, South Korea
 
Futures Experience: None
Platform: None
Favorite Futures: None
 
Posts: 12 since Jan 2013
Thanks: 3 given, 2 received

bump.

bump.
Is it that no one knows the answer to this or are the questions unclear?
Mike, would you please move this to the "commodities futures trading" forum?

Reply With Quote
 
  #6 (permalink)
Elite Member
Omer עומר / Israel י
 
Futures Experience: Master
Platform: NinjaTrader, Proprietary,
Broker/Data: Ninjabrokerage/IQfeed + Synthetic datafeed
Favorite Futures: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,503 since Sep 2013
Thanks: 1,706 given, 3,715 received
Forum Reputation: Legendary


aptare View Post
the ES rule says "Trading months: Five months in the March Quarterly Cycle (Mar, Jun, Sep, Dec)". I see only four months (Mar, Jun, Sep, Dec), so where's the fifth month? Why call it a quarterly cycle if there is a fifth month?

I can answer your questions
I will start with the first question, ES is a contract that exists with different expiry dates.
The 5 refers to the simultaneous trading of 5 different months.

Hence you have 5 months, rolling wave forward, as follows
ES 09-14
ES 12-14
ES 03-15
ES 06-15
ES 09-15

There is one contract that is called the active contract, where the bulk of the trading happens.
As you can see on this overview :

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Probably this will enlighten you and you might be able to answer all the other questions once
you understood this first answer... It's logic, but the jargon is, well it's the jargon...

Reply With Quote
 
  #7 (permalink)
Elite Member
Seoul, South Korea
 
Futures Experience: None
Platform: None
Favorite Futures: None
 
Posts: 12 since Jan 2013
Thanks: 3 given, 2 received

Thank you for your quick response. OK, I had understood that much about ES. I wanted to confirm that it does not trade any other months because I couldn't be too sure.


aptare View Post
Gold is also puzzling. As stated in rule 113102 for NYMEX: "Trading in Gold futures is regularly conducted in the following months: (1) the current calendar month;

(bold added to the quote)

Perhaps if I say how I understand the above quote, then someone can correct me if I'm wrong.

I understand it as: gold trades every calendar month of the year.
Why I don't think that is a correct interpretation of rule (1) in the above quote is because gold seems to not trade in January, among other months, when seen historically. For instance, when I look at some open historical data on gold futures, January is missing every year since the 1970s.

Reply With Quote
 
  #8 (permalink)
Elite Member
Omer עומר / Israel י
 
Futures Experience: Master
Platform: NinjaTrader, Proprietary,
Broker/Data: Ninjabrokerage/IQfeed + Synthetic datafeed
Favorite Futures: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,503 since Sep 2013
Thanks: 1,706 given, 3,715 received
Forum Reputation: Legendary

My interpretation


aptare View Post
Thank you for your quick response. OK, I had understood that much about ES. I wanted to confirm that it does not trade any other months because I couldn't be too sure.


(bold added to the quote)

Perhaps if I say how I understand the above quote, then someone can correct me if I'm wrong.

I understand it as: gold trades every calendar month of the year.
Why I don't think that is a correct interpretation of rule (1) in the above quote is because gold seems to not trade in January, among other months, when seen historically. For instance, when I look at some open historical data on gold futures, January is missing every year since the 1970s.

Correct, no January delivery

An overview of the contracts can be found on :
http://www.cmegroup.com/trading/metals/precious/gold.html

Reply With Quote
 
  #9 (permalink)
Elite Member
Seoul, South Korea
 
Futures Experience: None
Platform: None
Favorite Futures: None
 
Posts: 12 since Jan 2013
Thanks: 3 given, 2 received

Does anyone know why there is a discrepency between the rule and the months gold actually trades? I must be misinterpreting the rule because it seems strange to think the rule is either not followed or that it is wrong.

Reply With Quote
 
  #10 (permalink)
Elite Member
Bay Area California
 
Futures Experience: None
Platform: TT T4
Favorite Futures: Futures
 
Posts: 719 since Nov 2011
Thanks: 635 given, 740 received



aptare View Post
Does anyone know why there is a discrepency between the rule and the months gold actually trades? I must be misinterpreting the rule because it seems strange to think the rule is either not followed or that it is wrong.


There is no discrepancy, january (F15) wont be created until november (X14) is the front month.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

"If I agreed with you, we'd both be wrong."
Reply With Quote
The following 2 users say Thank You to addchild for this post:

Reply



futures io > > > > Clarify confusion regarding futures trading months and number of back months

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
6 Months Into Trading! User Intro eclipsemf Beginners and Introductions 7 June 19th, 2014 11:45 PM
Six months to live Big Mike Off-Topic 26 November 17th, 2013 07:21 AM
Credit Plunges As VIX Futures Jump Most In 2 Months kbit News and Current Events 0 February 9th, 2012 09:30 PM
Replay data for the most recent months wuolong Reviews of Brokers and Data Feeds 3 October 15th, 2010 09:39 PM


All times are GMT -4. The time now is 08:41 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-16 in 0.17 seconds with 20 queries on phoenix via your IP 54.160.245.121