Definition
Front month
The contract month closest to expiration.
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Front Month
The closest month to expiration for a futures or options contract.
Fungibility ...
Front Month: The first expiration month in a series of months.
Give Up: An order that, at the request of the customer, is credited to a brokerage house that has not performed the execution service.
Front Month: The spot or nearby delivery month, the nearest traded contract month. See Back Month.
Front Month
The first expiration month in a series of months.
Front-Running
The practice of trading ahead of large orders to take advantage of favorable price movement. Brokers are prohibited from this practice.
Front Month (Option): Usually the option with the shortest time to expiration or the future with the nearest time to delivery.
Short one front month call option and long one far month call option. (i.e. the option you sell is to be closer to expiration than the option you are buying).
Risk / Reward
Maximum Loss: Limited on both down and upside for market direction.
Back Months Futures delivery months other than front month. Bear One who expects a decline in prices.. A news item is considered bearish if it is expected to result in lower prices.
(URBN) - Bearish activity in the front month options on teen retailer Urban Outfitters indicates some traders are positioning for shares in the name to decline following the Company's fourth-quarter earnings report after the final bell today.
back months, blank check company, deck, ECN, fading a big dog, floor broker, floor trader, front months, loan participation fund, pooling of interests, project financing, purchase method, 50 at 7, 6 bid at 7, 6 for 50. Revised: 9/28/99.
USO has gotten so large that the fund must purchase between 20% and 25% of the front month crude futures contracts to enable it to track to the price of crude adequately.
Sell the call for the front month ahead (if June, sell July) Sell the call for a strike price that you are willing to sell the stock at.
In the United States, the price of the front month light sweet crude oil futures contract, traded on the NYMEX commodity exchange (symbol CL), is widely reported as a proxy for the cost of imported crude oil.
A calendar spread is the sale of a front month option at a specified strike and the purchase of a further out month option at the same particular same strike.
Following is a sample of a calendar spread on an underlying we will call XYZ.
Futures contracts that have the longest time before expiration. In contrast to front month, which is the futures contract that will expire next. Typically the front month is the most actively traded futures contract.
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Back Months: Futures delivery months other than the spot or front month (also called deferred months).
Back Office: The department in a financial institution that processes and deals and handles delivery, settlement and regulatory procedures.
Markets in which the front month options have a significantly higher implied volatility than the further out month options. A skew of greater than 15% is considered significant.
For example, you may be able to sell a front month Dow 10300 call option for $650, and buy a 10500 call option for $250 to protect your short position. The trader would bring in a credit of $400 as a reward for accepting the risk of the Dow going up.
The NDX is traded using the ND H1 or NQ H1 (current front month) futures contracts.
Description of Back Months for Commodity Futures. Back Months are futures delivery months other than the spot or front month.
Bear Market
Bear Market definition and description as it pertains to the commodity and futures markets.
Spot Month In trading, the current contract month. Also known as the front month.
Spot Prices Same as cash price, the price at which a commodity is selling at a particular time and place.
Conversely, if you think you can spread the front months and then buy the bid and sell the offer, forget it. It isn't going to happen as a CTA. Don't confuse being an exchange member and upstairs market-maker with managing customer money.
A marketplace phenomenon involving a comparison of futures price and spot price of a particular security, with the expectation that the prices associated with the front month (the month specified in the futures contract) will be lower than the prices ...
When futures contract months or quarters transition from one month or quarter to the next month or quarter, the future closest to expiration (called the "front month") decreases in open interest and the next futures contract ...
Nearby Delivery Month - Futures contracts that are closest to maturity. Also known as front month.
Options selected for this index are one call and one put just out of the money, and one call and one put just in the money, for each of the two front months of the OEX (S&P 100).
While there is nothing wrong in taking a short term position, there will be instances when you’re forced to take an additional month or so, especially if your analysis does not show significant movement in the front month.
 See also: Contract, Market, Trading, Option, Options
  
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