Understanding CME contracts
Front month, quarterly cycles and what to avoid.
Every futures contract has an expiration. Always trade the front-month contract, the one with the highest volume and liquidity.
The most liquid index futures (ES, NQ, RTY, YM) follow a quarterly cycle, expiring in March (H), June (M), September (U) and December (Z).
Red flags to avoid: contracts trading under ~1,000 contracts/day, spreads wider than 1–2 ticks, or contracts expiring within two weeks.
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