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To: ToTradeWell who wrote (7126)6/8/2001 4:51:52 PM
From: stullbj  Respond to of 8925
 
Although Mike can answer this better than I, I'll still take a shot since I'm included in the anyone group.

shot

You would trade the contract with the most volume. Hence you can take a look at both the June and September contract and see which one has the most volume trading in it. Then you will see that the Sept contract has the most volume and then decide to trade it, if it indeed has the most volume, which it should by now.

The key is volume. Without the volume, you really don't have the "true price" as I like to call it. Meaning, you will probably see a lot of gapping intraday as opposed to a smooth flow.

shot taken

Hope that helps,

-Brian-



To: ToTradeWell who wrote (7126)6/9/2001 9:26:41 PM
From: Teresa Lo  Respond to of 8925
 
After the rollover, the new contract is now called the "front month". If you are simply trading back and forth for profits, you should trade the front month contract, as it is the most liquid. We want to trade liquid markets because we want to be able to get in and out quickly, and do size if we wish.

There are traders who put on "spreads", using combinations of different months. I don't know much about this at all, but that would be a reason why someone would be executing orders in a month other than the "front month".

Teresa