Futures Pack

DEFINITION of 'Futures Pack'

A type of futures order enabling purchase of a predefined number of futures contracts in four consecutive delivery months.

BREAKING DOWN 'Futures Pack'

Futures packs are differentiated by using colors to identify each group of contracts. A pack order is divided into white, red, green, blue and gold. A white pack starts with the soonest delivery month and covers the first four quarterly months in the first year. A red pack starts with the fifth quarterly delivery month and covers all quarterly months in year two and so on for the rest of the colors.

RELATED TERMS
  1. Delivery Month

    A key characteristic of a futures contract that designates when ...
  2. Contract Month

    The month in which a futures contract expires. The contract can ...
  3. Delivery Price

    The financial value of the conveyance of the underlying commodities ...
  4. Back Months

    The available futures contracts for a particular commodity that ...
  5. Spot Delivery Month

    The nearest month when a futures contract matures. The spot delivery ...
  6. Physical Delivery

    Term in an options or futures contract which requires the actual ...
Related Articles
  1. Markets

    Crude Oil Prices: Comparing Future Price Vs. Current Market Price

    Discover the differences between oil futures market prices and oil spot market prices and what leads to the differences between the two.
  2. Options & Futures

    20 Investments: Futures Contract

    What Is It? As the name implies, futures are contracts on commodities, currencies, and stock market indexes that attempt to predict the value of these securities at some date in the future. ...
  3. Term

    The Difference Between Forwards and Futures

    Both forward and futures contracts allow investors to buy or sell an asset at a specific time and price.
  4. Insurance

    Futures Fundamentals: Introduction

    A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for future delivery ...
  5. Stock Analysis

    Can a Starbucks Delivery Service Actually Succeed? (SBUX, DPZ)

    StarbucksĀ (NASDAQ: SBUX) is going vertical. This week, it launched its much-anticipated delivery service with a test run beginning in New York's Empire State Building. Although it's a modest ...
  6. Investing

    How Amazon's Restaurant Delivery Service Makes Money (AMZN)

    Amazon's delivery service acts as a loss leader to corner the market now before providing high margin revenue in the future.
  7. Insurance

    Futures Fundamentals: Strategies

    Essentially, futures contracts try to predict what the value of an index or commodity will be at some date in the future. Speculators in the futures market can use different strategies to take ...
  8. Introducing the New Starship Technologies Delivery Robot

    A self-driving delivery robot designed by the co-founders of Skype is revolutionizing the way goods are shipped and delivered by eliminating inefficiency.
  9. Insurance

    Futures Fundamentals: Conclusion

    Buying and selling in the futures market can seem risky and complicated. As we've already said, futures trading is not for everyone, but it works for a wide range of people. This tutorial has ...
  10. Options & Futures

    A Quick Guide for Futures Quotes

    Here is a quick guide to futures quotes.
RELATED FAQS
  1. Why do futures' prices converge upon spot prices during the delivery month?

    It's a fairly safe bet that as the delivery month of a futures contract approaches, the future's price will generally inch ... Read Answer >>
  2. What's the difference between cash-on-delivery differ and delivery against payment?

    Find out more about cash on delivery and delivery versus payment transactions and the difference between these two types ... Read Answer >>
  3. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
  4. How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between ... Read Answer >>
  5. How can I calculate the notional value of a futures contract?

    Learn how the notional value of a futures contract is calculated, and how futures are different from stock since they have ... Read Answer >>
  6. What are some securities that have spot rates?

    Learn about the types of assets that have spot rates, and understand how the spot rate is used to determine the fair market ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center