When to Switch Over to Trade the Next Contract Month

When to Switch Over to Trade the Next Contract Month…

 

When Trading the Index E-Mini Futures?

Believe it or not, we get calls all the time asking this one simple question, so we thought we would answer it quickly for you right now in this short article.  There is one day once a quarter where the market (stock index futures contracts that is) does not seem to move very much.  Guess what day that is? Yes, you’re right, it is the first day when the next (active) contract month starts trading. I know this sounds basic, but most people that have not been trading for very long don’t know when to switch over to the next contract month.  For experienced traders, a recap of when to switch over is good to keep in mind.  Let me quickly recap what the four trading months are for the index futures contracts, such as the E-Mini S&P 500, Dow Futures, Russell, Nasdaq, etc. and exactly when to switch over to the next active contract month.

The four contract months are as follows:

MARCH (H) JUNE (M) SEPTEMBER (U) DECEMBER (Z)

 

You want to switch over on the Second Thursday Of The Expiration Month. This means you start trading the March (H) contract the second Thursday of December. Start the June (M) contract on the second Thursday of March. Start trading the September (U) contract on the second Thursday of June. Start the December (Z) contract on the second Thursday of September. That’s all there is to it. Most beginner traders do not know this though, that is why I decided to put this in here. This is obviously very important to know if your long-term goal is to trade for a living.

U.S. Government Required Disclaimer - Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the Trading Concepts methodology or system or the information in this letter will generate profits or ensure freedom from losses.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

© Trading Concepts, Inc. 1994-2016. All rights reserved.