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When do futures contracts expire?
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13th Nov 2009 by JonB
Futures expire on the third friday on their respective expiration months. Since the "front month" contract is the most heavily traded (the contract closest to expiration and therefor most current), each contract is heavily traded for its final 3 months of existence. For example, on the third Friday of September, the September futures expired and most people began trading the December contract, the new front month contract. When the December contract expires, people will begin trading the March contract
Futures expire on the third friday on their respective expiration months. Since the "front month" contract is the most heavily traded (the contract closest to expiration and therefor most current), each contract is heavily traded for its final 3 months of existence. For example, on the third Friday of September, the September futures expired and most people began trading the December contract, the new front month contract. When the December contract expires, people will begin trading the March contract
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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
11th Nov 2009 In Derivatives
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Subjects: futures contracts,
