ZN futures - can I buy contracts that expire in 6 or more months?

Discussion in 'Index Futures' started by blink18, Apr 13, 2020.

  1. blink18


    I don't have much experience with futures, but I was looking at CME's website on how much volume is traded with every expiration month, and it looks like there is no volume for ZN/SEP2020 and ZN/DEC2020.

    I tried to buy 1 contract ZN/DEC2020@ECBOT on my paper trading account at IB and nothing happened. Market order stayed in blue color (transmitted, not yet acknowledged).

    What is going on? I thought you can buy every expiration month available with high liquidity? I also tried to buy 1 ZN/JUN2020@ECBOT and this one was filled immediately!
  2. schizo


    I'm not entirely certain but for futures that trade on quarterly cycles, like ES or ZN, I think you can only trade the FRONT MONTH.
  3. Overnight


    If there is no volume, you won't get a fill.

    If you put a bid or ask out there at a price point on ZN December, someone may take your trade. Then you will have added liquidity. :)


    To answer your main question, just look at the specs...


    You see how you have a list of 3 quarterly months?

    Specs, specs, specs.

  4. blink18


    Thanks. But how it's possible that SEP2020 and DEC2020 almost have no volume? Does nobody trade those months?
  5. maxinger


    answer is very simple.
    low or no volume simply means people not interested to trade those things.
    Overnight likes this.
  6. Incorrect. You can trade contracts which are not the front month. But you need a counter party. If there isn't a counter party you won' be able to close a deal.
  7. schizo


    Hmm, the bond market being much larger than the stock market, it's hard to believe there would not be a counterparty. Anyway, I've always traded the front month, so this is all new for me. Speaking of which, why would anyone want to trade a back months anyway? They're illiquid and you most likely will end up paying a higher premium. Even worse, they don't move tick for tick in tandem with the front month contract.
  8. Overnight


    You just answered your own question. Because everyone thinks like that..."Why would I want to trade a back month" (and you mean forward month, but we get it.).

    So that's why. Everyone thinks it is illiquid, so they don't trade it, so it becomes illiquid. Self-fulfilling.

    Don't you dare say that to the energy markets though, like CL. :)


    Volume pR0n!
  9. shatteredx


    Currently there is no bid/ask for 12-20 but there is liquidity for 09-20.
  10. Overnight


    You will not see a bid/ask for an illiquid market that is closed. Check again tomorrow at 9:30 AM ET
    #10     Apr 13, 2020