Back Months

AAA

DEFINITION of 'Back Months'

The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future. Also referred to as deferred futures or forward months.

INVESTOPEDIA EXPLAINS 'Back Months'

Back month futures contracts may have identical actuals as those contracts are expiring in the near term. However, as the time of delivery is further into the future, the price of the contract will vary. Similar to option contracts, futures may extend beyond many months.

RELATED TERMS
  1. Front Month

    Used in futures trading to refer to the contract month with an ...
  2. Cash Settlement

    A settlement method used in certain future and option contracts ...
  3. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  4. Basis Grade

    The minimum accepted standard that a deliverable commodity must ...
  5. Current Delivery

    A type of futures contract that requires the delivery of the ...
  6. Delivery

    The action by which an underlying commodity, security, cash value, ...
Related Articles
  1. Futures Fundamentals
    Insurance

    Futures Fundamentals

  2. All About Liquid Commodities
    Options & Futures

    All About Liquid Commodities

  3. Curious About Stock Index Futures? Read ...
    Options & Futures

    Curious About Stock Index Futures? Read ...

  4. How to Trade Futures Contracts
    Options & Futures

    How to Trade Futures Contracts

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center