Furthest Out

Filed Under: ,
Dictionary Says

Definition of 'Furthest Out'


Mainly pertaining to options and futures, this is the options or futures contract that has the most distant deliverly month or expiration. The furthest out contract is the contract with the quoted expiry the furthest away, as it relates to time. While this furthest out contract differs from security to security, it is not uncommon for it to span more than a calendar year.

Investopedia Says

Investopedia explains 'Furthest Out'


Many options and futures traders also refer to a furthest out contract as the "back month." Typically these back month contracts will be very illiquid, as most traders prefer to trade in "front month" or closest to delivery contracts due to their liquidity in the options and futures markets. Illiquidity in such markets can lead to bid and ask spreads being quite wide, causing trades to become even more few and far between.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center