Do 2 Futs ES contracts for subsequent months go in same direction ?

Discussion in 'Index Futures' started by traderwald, Nov 10, 2020.

  1. Hi guys,

    Do 2 Futs ES contracts for subsequent months go in same direction ? Example ES for Dec and March - do they go in same direction and ? And have a constant price gap between them ?

    Thank you
  2. Overnight



    Not exactly such, because the forward month will have much less volume. So your forward price quote will show as the last price, but since the last price print the bid/ask could be many points above or below the last. You'll just have to pull up some charts to compare.

    I know what you are thinking.

    Don't get cocky with the idea of spreading the two, or trying to arb it.
  3. TimMykes


    If you're really fast and patient, you might make a 1/4 once a month
  4. You can sell the expensive one and buy the cheaper one.
    This will make you guaranteed profits as the price eventually gets closer together :D:D :D
  5. TimMykes


    do it all the time
    its one of my trade secrets
  6. traider


    dont encourage more competition into the highly profitable world of spread trading. Please keep this to yourselves
  7. Amatrue


  8. traderjo


    Lets get some clarity are you talking about A) trading the spread with it's own book or B) legging in?
    With B)At retail level? as a exchange traded spread you are always at the back of the Q! and never get filled on spread spikes..
  9. Looks like the forward month will have comparatively less volume so you can try to look at some charts and compare them as per your understanding.
  10. You might want to act quickly on this if you wish to keep making money.
    #10     Nov 23, 2020