Contract Month

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DEFINITION of 'Contract Month'

The month in which a futures contract expires. The contract can be delivered during the current month, provided that the terms and conditions set forth in the contract are met. Either delivery or expiration must take place in order to settle the contract.

Also known as the "delivery month".

INVESTOPEDIA EXPLAINS 'Contract Month'

Futures contracts are similar to options contracts in that they are only valid for a specified length of time. Then the contract either expires or must be delivered. Because delivery takes place in this month, the contract month is also known as the delivery month.

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