Nearby Month

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Dictionary Says

Definition of 'Nearby Month'

In the context of options and futures, the month closest to delivery (futures) or expiration (options). "Nearby month" is sometimes referred to as "nearest month," "front month" or "spot month." A contract for the nearby month is the shortest contract that an investor can purchase. Trading is usually most active for the nearby month as compared to deferred months.
Investopedia Says

Investopedia explains 'Nearby Month'

In a normal futures market that is in contango, nearby months are less expensive than deferred months. In backwardation, futures market conditions are such that the nearby month is more expensive than deferred months. The nearby month is a key component of many options and futures trading strategies, including the calendar spread and reverse calendar spread. These strategies seek to profit from differences in pricing between the nearby month and a more distant month for the same underlying market.

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'Nearby Month'

  • Option Spreads: Horizontal Spreads | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads5.asp
    ... In horizontal time spreads, since you are short the nearby month and long a back
    month (which could be the next month or farther away month), you will have ...

  • Living The High Life For $1,000 Per Month - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1109/What-does-1000-per-month-rent-get-you-across-the-U.S.aspx
    ... for everyone for $1,000 per month. ... Hiking and bike trails are also nearby. The
    apartments offer views of the Willamette River or the downtown skyline. ...

  • Option Spreads: Diagonal Spreads | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads6.asp
    ... In terms of position Vega, meanwhile, unless you go too wide on the spread between
    the nearby and back month options, you will have a positive position Vega ...

  • Trading Calendar Spreads In Grain Markets

    http://www.investopedia.com/articles/optioninvestor/calendar-spread-grain-market.asp
    ... it is not uncommon to find deferred contracts trading well above nearby months. ... grain,
    or the dollar amount required to "carry" grain from one month to another ...

  • Why Europe Has The Cheapest Airfare - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Why-Europe-Has-The-Cheapest-Airfare.aspx
    ... The physical closeness of cities allows for more alternate airports to spring up
    nearby to established airports, in order to alleviate delays and air traffic ...

  • Foreclosure Opens Doors For Real Estate Investors

    http://www.investopedia.com/articles/pf/07/hot-foreclosures.asp
    ... There are things to do close by. Stores are easy to get to and are nearby, and a
    variety of important amenities are available. ... 6 Month CD, 0.46%, 0.47%. ...

  • 6 iPhone Apps To Help You Budget Better - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0311/6-iphone-apps-to-help-you-budget-better.aspx
    ... your account balance and recent transactions. Mobile apps can also help
    you pinpoint nearby ATMs. Bank of America, Chase, and Wells ...

  • 5 Real Estate Fears That Keep You From Buying - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1110/November-4-5-Real-Estate-Fears-That-Keep-You-From-Buying---Slideshow.aspx
    ... the homes are well-kept, primarily owner-occupied and with high-quality schools
    nearby. ... fund set aside for home maintenance and add to that fund every month. ...

  • Top Cities For Real Estate Flipping - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0610/Top-Cities-For-Real-Estate-Flipping.aspx
    ... 2009 with only a small dip in March 2010, the most recent month for which ... Feliz,
    shows the highest discount potential of up to 57%, while the nearby 90026 zip ...

  • 5 Real Estate Fears That Keep You From Buying Slideshow ...

    http://www.investopedia.com/slide-show/5-real-estate-fears
    ... the homes are well-kept, primarily owner-occupied and with high-quality schools
    nearby. ... fund set aside for home maintenance and add to that fund every month. ...

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