Nearby Month

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Nearby Month

Among several different futures contracts or options, describing the one with the shortest maturity. For example, given three futures contracts, one expiring in March, one in June, and one in September, the nearby month contract is the one expiring in March. It is also called the spot month. See also: Most distant futures contract.
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References in periodicals archive ?
It can be seen that backwardation is higher for the far month's futures contracts than that of the nearby futures contracts. This is applicable for both weak and strong backwardation.
The paper also finds that the level of backwardation is higher for the far-month-futures contracts than that of the nearby futures contracts.
(1) We use four different nearby futures contracts, i.e., with deliveries one, two, three and four months ahead of the placing of the hedge.
We compute the gains/loss on the hedged portfolios using four different nearby futures contracts, i.e., one, two, three and four months ahead of the month in which the hedge is placed.