Furthest Out


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.

BREAKING DOWN '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.

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