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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Nelson958 who wrote (2550)	2/6/2003 10:54:37 AM
From: OX	Read Replies (1) of 12411

it really depends on what you're trying to do. farther month and near month futures contracts do not necessarily (re)act the same. there are popular strategies that involve spreading near vs far month contracts (known as terms such as backwardation and contagno). as for gold (something I am not familiar with), in addition to the traditional futures calculation involving dividend and time to expiration, there are things like lease rates, i believe, that fall into the calculation of the futures contract. quite complex and not as simple as buying a farther month contract to take advantage of a later expiration cycle. better go read a good book or two.

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