What Month Do I Trade?

      Some products trade every month like energies (CL, NG). Some trade quarterly, such as equity indexes (ES, TF); treasuries (ZB, ZN); or currencies (6E, 6J); and some have completely unique schedules, like agricultural products (ZW, ZS) or metals (GC, SI).

      Generally speaking, you always want to trade the closest month (aka. the front month). However, if you plan on a long term trade in which you’re planning on holding the position for months, it’s a good idea to look farther out.

      By doing this, it prevents you from having to roll a position due to the front month expiring or going into delivery. You will have to eventually deal with that, but why pay extra commission to roll a position when you don’t have to? The only potential issue in looking ahead is ensuring that there is some volume and liquidity in the future month you are looking to potentially put the position in. Always check a DOM for market depth.

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      Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.

      The trading of virtual currencies and Bitcoin futures carries additional risk. Prior to trading virtual currencies, please view NFA & CFTC advisories providing more information on these potentially significant risks.