DEFINITION of 'Blue Month'
The month during which there is the greatest trading activity in derivatives trading. These derivatives can be options, futures, or other type of derivativebased instruments. The occurrence of a blue month is typically of interest to hedge funds and large financial institutions because the volume of derivative trading can be used as a technical trading signal.
Next Up
BREAKING DOWN 'Blue Month'
Volumes of daily traded shares are much more accessible than the volume of daily derivative trading. However, options and futures trading activity is also publicly accessible to keen investors. The month when the volume of derivative trading is highest is referred to as the blue month.
RELATED TERMS

Exchange Traded Derivative
A financial instrument whose value is based on the value of another ... 
Underlying Asset
A term used in derivatives trading, such as with options. A derivative ... 
Underlying Option Security
An underlying option security is the financial instrument on ... 
Derivative Product Company  DPC
A specialpurpose entity created to be a counterparty to financial ... 
Derivative
A security with a price that is dependent upon or derived from ... 
Derivatives Time Bomb
A possibile situation where the financial markets plunge into ...
Related Articles

Professionals
What is a Derivative?
CFA Level 1  What is a Derivative?. Learn the basicas of derivative instruments. Covers various types of options, swaps and differentiates exchange and overthecounter trades. 
Investing
What Is A Derivative?
A derivative is a security whose price is dependent upon or derived from one or more underlying assets. Learn more on how investors can use this financial instrument in their trading strategies. 
Professionals
Criticisms of Derivatives
CFA Level 1  Criticisms of Derivatives. Discusses types of criticisms facing derivatives. Offers contrasting opinions on the use of derivatives and their role in the market place. 
Options & Futures
Derivatives 101
A derivative investment is one in which the investor does not own the underlying asset, but instead bets on the assetâ€™s price movement with another party. 
Professionals
Derivatives
CFA Level 1: Section 15  Derivatives 
Investing Basics
Warrants
Learn more about this derivative security. 
Professionals
Purposes and Benefits of Derivatives
CFA Level 1  Purposes and Benefits of Derivatives. Learn the purposes and benefits of derivatives. Discusses how derivatives can yield profits and be used as a tool for risk management. 
Products and Investments
SEC Derivatives Rule May Limit Diversification
The SEC has proposed rules that will limit the use of derivatives by fund managers. Critics believe the rules will impede funds' ability to diversify. 
Fundamental Analysis
Derivatives 101
Learn how to use this type of investment as an alternative way to participate in the market. 
Options & Futures
Futures, Derivatives and Liquidity: More or Less Risky?
Futures and derivatives get a bad rap after the 2008 financial crisis, but these instruments are meant to mitigate market risk.
RELATED FAQS

What expiry months are typically available for derivatives?
Discover more about the derivatives market and learn about the varying expiration months for derivatives in different financial ... Read Answer >> 
Can mutual funds invest in derivatives?
Find out about mutual fund investment options, and understand whether mutual funds are permitted to include investments in ... Read Answer >> 
How big is the derivatives market?
Examine the potential size of the total derivatives market, and learn how different calculations can reduce the estimate ... Read Answer >> 
What kinds of derivatives are traded on an exchange?
Learn about the different types of derivatives traded on exchanges, including options and futures contracts, and discover ... Read Answer >> 
Are ETFs considered derivatives?
Learn why most exchangetraded funds (ETFs) are not considered derivative securities and the special circumstances when this ... Read Answer >> 
What are the main risks associated with trading derivatives?
Understand derivatives trading and learn about the primary risks usually associated with trading in the derivatives market, ... Read Answer >>