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.

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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 types of items can you buy futures for?

    Learn what items futures may be purchased for, what a futures contract is and discover how the futures markets have greatly ... Read Answer >>
  3. How do I learn technical skills for trading commodities?

    Learn what resources are available to learn about trading commodities, and understand some of the differences between stocks ... Read Answer >>
  4. What does it mean to take delivery of a derivative contract?

    Find out more about derivative contracts and what it means when the holders of derivative contracts take delivery of the ... Read Answer >>
  5. 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 >>
  6. What types of futures contracts are typically sold on an exchange?

    Explore the wide variety of available futures contracts traded on exchanges, which range from agricultural commodities to ... Read Answer >>
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