Front month — The nearest-to-expiry contract month, normally the most actively traded and the one quoted by default.
How front month works in prop trading
The front month carries the volume, the tightest spreads, and the price everyone quotes. For equity index futures it is the current quarterly contract until the roll, at which point the designation moves to the next month even though the old one has not expired.
That gap between 'nearest expiry' and 'most liquid' is where prop traders lose money on fills. During roll week the contract closest to expiry is no longer the active one, and a platform defaulting to it puts your orders in a thin book with a wide spread. Confirm you are trading the month with the volume, not the month with the nearest date.
Key points
- Normally the most liquid month with the tightest spreads.
- During roll week the nearest-expiry month is no longer the active one.
- Prop firm slippage complaints during roll week are usually the wrong-month problem.
- Check open interest and volume rather than the expiry date to identify the active contract.
Also known as
- nearby contract
- lead month
- active month
Frequently asked questions
Which futures contract month should I trade?
The one carrying the volume, which is the front month outside roll week and the next quarterly month during and after it. Compare volume and open interest across the two months rather than assuming the nearest expiry is correct.
Why are my fills worse this week?
If it is roll week, you may be trading the expiring contract after liquidity has moved to the next month. The book thins and the spread widens, producing exactly the slippage traders often attribute to the prop firm's execution.
Front month is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.