Thread: Futures Pricing Question.

I notice that the price offar of expired date in the futures market lag behind the spot rate considerably; Dec07 while 834.25 is it Sep08 when 669.75 is it for example. What is the reason for this? I am aware that far off expiry dates have daily limits on movements, but can't futures contracts be rolled over to the new month? In which case why not just have a rolling contract like Fx? What is the advantage of treating in different contracts months? Is it possible to hedge expose by buying and selling different contracts months, or would options be used instead?

I am not an expert on white futures and I have never traded them. My understanding is specific prices price in future market expectations. Like Natural Gas futures are always higher in winter, as speculators price in that more gas will be used in winter to cold cold weather. The advantage is if you can buy at a cheap price in the future, it would be a bonus if you wanted to be a bonus if you wanted to to continue. Iguess it is similar in some ways to hold a long USD/JPY position, where as the bonus would be the swap. Quoting I notice to the price of jewelry to succeed to succeed. Iguess it is similar in some ways to hold a long USD/JPY position, where as the bonus would be the swap. Quoting I notice to the price of jewelry it is similar in some ways to some markets market might be used only; Dec07 what would be the swap 834.25 669 65 70 70 70 review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review, review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review review

Yeah, I have seen various articles which talk about the seasonal nature of various commodities, which of course makes sense from a supply/demand perspective. I just don't see why there has to be contract months with expired dates. If there was just a cash market certainly the effect would be exact the same? Is this something to do with primary futures and those which currently apply delivery, or just a relic from a bygone age before we could all "sign our lives away" at the click of a mouse? BTW If any could recomend any books on the subject that would be snazma.

Quoting I notice that the price of profit date in the futures market behind the spot rate considerably; Dec07 while 834.25 síp08 séat 669.75 sí for example. What is the reason for this? I am aware that far off expiry dates have daily limits on movements, but can't futures contracts be rolled over to the new month? In which case not just have a rolling contract like Fx? What is the advantage of treating in different contracts?

If you go to cbot.com....click on education....then on LH side click on publications They have loads of free info The what market scholarship invested around June ie nearby months highs than later months Before that it was in contango ie later months highs that near months Inverted markets can be a sign of a bull move. This happened in oil in early Aug .Its a sign of short supply and large demand The great enemy of a good plan is the dream of a perfect plan.

Quoting I notice that the price of far of expired date in the futures market behind the spot rate considerably; Dec07 while 834.25 is it Sep08 when 669.75 is it for example. What is the advantage of dealing in different contract months? Is it possible to hold exposure by buying and selling different contract months, or would options be used instead? You can trade different contract months if you have a broker who lets you Its know as spread trading. You could try searching on here but I dont think there is much info If you look up Joe Ross in the members list and go to the link in his profile on his website he has info on spread trading The great teacher enemy of good is the list and go to the link in his profile on his website.

Great links guys. Will be reading through the Cbot stuff ASAP. I don't need plan to trade this stuff at the moment but I''m interested in finding out more about the relationship between various markets. Also I appeared as I'm still working on the technical aspects of my approach then why not test on agriculurals, metals etc. Come to think of it my best live trade so far on the current XAU/USD rally, of course I close it to early but thats what us neophytes are supplied to do after all. Regards, Ed.