Futures · Rookie
Front-month contract
Also searched as: front month, active contract
What does Front-month contract mean?
The front-month contract is the nearest listed futures maturity that is still relevant for trading. Traders also use the term loosely for the active nearby contract, which may change before expiration.
Example
Trading activity shifts toward the next quarterly maturity while the earlier contract still exists.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Check the actual month code, volume and provider permissions; the nearest expiration is not always the most liquid choice.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.