Front Month
The nearest-expiry futures contract with the highest liquidity and trading volume at any given time.
The front month (or lead month) is the active futures contract closest to expiration. Because it is the nearest delivery, it tends to carry the most open interest and tightest bid-ask spreads — making it the default choice for active traders.
As expiry approaches and traders roll forward, the front-month title passes to the next contract in the cycle. For equity index futures (ES, NQ, YM, RTY) this happens roughly 7–10 days before the current front-month expires.
Related Terms
Back Month
Any futures contract month beyond the front month; typically less liquid and used for hedging or spread strategies.
BeginnerCalendar Spread
A spread trade that is simultaneously long one contract month and short another month of the same futures product.
IntermediateContinuous Contract
A synthetic price series stitching together successive front-month contracts to produce an unbroken historical chart for analysis.
IntermediateContract Month / Delivery Month Codes
The single-letter codes futures exchanges assign to each calendar month, appended to a root symbol with a year to identify a specific contract.
BeginnerLead Month
The futures contract month with the highest current open interest and volume — synonymous with front month.
BeginnerOpen Interest
The total number of outstanding futures contracts that have not been settled, delivered, or offset. A measure of market participation.
IntermediateRoll Date
The session when volume and open interest migrate from the expiring futures contract to the next contract month.
IntermediateRollover
Closing a near-expiry futures position and simultaneously reopening it in the next contract month to maintain exposure without taking delivery.
Intermediate