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Home/Glossary/Calendar spread

Futures · Pro

Calendar spread

By Omer Rapaport · Content updated 11 September 2026

What does Calendar spread mean?

A calendar spread combines opposite positions in different maturities of the same underlying futures product. Its result depends on how the price difference changes.

Example

A trader buys a later delivery month and sells an earlier one, expressing a view on their relative prices.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

Both legs create execution and margin requirements. Check whether the prop platform permits spreads and how both contracts count toward limits.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • CME Group - FX futures calendar spreads

Related terms

  • Backwardation
  • Cash settlement
  • Contango
← All 181 terms

Frequently asked questions

What should prop traders check before trading a calendar spread?

Both legs create execution and margin requirements. Check whether the prop platform permits spreads and how both contracts count toward limits.

Sources: CME Group - FX futures calendar spreads

What is a practical example of Calendar spread?

Illustrative example: A trader buys a later delivery month and sells an earlier one, expressing a view on their relative prices.

Sources: CME Group - FX futures calendar spreads

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