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.

  1. Delivery Month

    A key characteristic of a futures contract that designates when ...
  2. Current Delivery

    A type of futures contract that requires the delivery of the ...
  3. Commodity Futures Contract

    An agreement to buy or sell a set amount of a commodity at a ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. Nearby Month

    In the context of options and futures, the month closest to delivery ...
  6. Swap

    A derivative contract through which two parties exchange financial ...
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  1. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  2. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  3. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  4. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  5. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  6. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>

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