
Back Months
Back months' refers to futures contracts with delivery dates set far into the future, contrasting with near-term contracts. This term is widely used in commodity trading, where contracts are structured around specific delivery timelines. Traders use back months to speculate on or hedge against long-term price movements of commodities like oil, grains, or metals. These contracts often exhibit lower liquidity and wider spreads compared to front-month contracts, reflecting their extended horizon. Back months help market participants manage risk or position for anticipated trends well beyond the immediate future.
Related Terms
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company's financial...
Industry Analysis
Industry analysis is a technique for evaluating an industry’s competitive landscape, potential profitability, supply-demand dynamics,...
Long Strangle
A long strangle is an options strategy where a trader buys a call option and...
High Beta Stocks
High Beta stocks are shares that exceed market returns but come with elevated risk. They...
Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS =...
Follow On Public Offer
A Follow-On Public Offer (FPO) enables a publicly traded company to issue additional shares to...