Back Month Contract

  

You're trading agricultural commodities through the futures market. Soybeans, to be exact. You think the price of beans will rise significantly, because there was a bad crop in Brazil, with another bad crop on the horizon in the U.S. Worldwide demand has outstripped supply, meaning the price will most likely rise. To finagle the greatest amount of time possible, you buy a back month contract. This is the furthest out option available to you (as opposed to a front month contract, which is the closest upcoming expiration date). Of course, as time goes on, your back month contract will eventually become a front month contract.

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