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.
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