# Contract Months and Expiration

> Futures trade in specific contract months with letter codes and fixed expiry rules. Learn month codes, the front month, quarterly cycles and how expiry works.

Source: https://learn.tradelabsai.com/futures/contract-months-and-expiration/  
Track: Futures · Level: Intermediate · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Contract Months and Expiration", https://learn.tradelabsai.com/futures/contract-months-and-expiration/

Unlike stocks, which trade indefinitely, futures contracts have a fixed life. Each contract is tied to a specific delivery or settlement month, and it stops trading on a set day. At any time, several contract months on the same asset trade side by side, each with its own price. Knowing how months are named, which month is most active and when each one expires is essential for placing the right orders and avoiding delivery.

## Month codes

Futures symbols combine a product code, a month letter and a year digit or digits.

| Month | Code | Month | Code |
|---|---|---|---|
| January | F | July | N |
| February | G | August | Q |
| March | H | September | U |
| April | J | October | V |
| May | K | November | X |
| June | M | December | Z |

**Example: Reading a symbol**
ESZ6 is the E-mini S&P 500 contract for December 2026: ES (product), Z (December), 6 (2026). CLF7 is WTI crude oil for January 2027. Some platforms use two digit years, such as ESZ26.

## Listing cycles

| Contract type | Typical months |
|---|---|
| Equity index futures | Quarterly: March, June, September, December (H, M, U, Z) |
| Treasury futures | Quarterly: March, June, September, December |
| Currency futures | Quarterly: March, June, September, December |
| Crude oil, natural gas | Every month |
| Gold | Active months: February, April, June, August, October, December |
| Corn | March, May, July, September, December |
| Soybeans | January, March, May, July, August, September, November |

## The front month

The front month is the nearest contract to expiry. It is usually the most liquid, but not always:

- **Equity index futures:** volume shifts to the next quarterly contract about a week before expiry, around the "roll date".
- **Physically delivered commodities:** speculators leave before first notice day, so volume moves to the next month earlier. See [First Notice Day and Last Trading Day](https://learn.tradelabsai.com/futures/first-notice-day/).

Traders usually trade the most active contract, which may already be the second month.

## How expiration works

Each contract has a last trading day set by its specifications:

| Contract | Last trading day (simplified) | Settlement |
|---|---|---|
| E-mini S&P 500 | Third Friday of the contract month, at the opening auction | Cash, to a special opening quotation |
| WTI crude oil | Three business days before the 25th calendar day of the prior month | Physical |
| Gold | Third last business day of the contract month | Physical |
| Euro FX | Two business days before the third Wednesday of the contract month | Physical currency |

On the third Friday of March, June, September and December, stock index futures and options and single stock options expire together, a day known as triple witching. See [Options Expiration and Triple Witching](https://learn.tradelabsai.com/macro/triple-witching/).

## Price differences between months

Contracts for different months trade at different prices, reflecting financing, storage, dividends and expectations about supply and demand. A curve of prices across months shows contango (later months higher) or backwardation (later months lower). See [Contango](https://learn.tradelabsai.com/futures/contango/) and [Backwardation](https://learn.tradelabsai.com/futures/backwardation/).

**Example: A crude oil curve**
On one day, WTI crude futures trade at $78.20 for December, $77.60 for January, $77.05 for February and $76.50 for March. Later months are cheaper: the market is in backwardation, often a sign of tight current supply. A trader buying the March contract is not buying oil for $76.50 today; they are agreeing a price for oil delivered next March.

## Rolling before expiry

To keep a position beyond one contract's life, traders roll: they close the expiring contract and open the next one. The price difference between months affects returns, especially for long term holders. See [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/) and [Roll Yield](https://learn.tradelabsai.com/futures/roll-yield/).

## Charts across expiries

Because each contract expires, long price histories require stitching contracts together into continuous series, which can be done in different ways. See [Continuous Futures and Back-Adjustment](https://learn.tradelabsai.com/futures/continuous-futures/).

## Common mistakes

- **Trading an illiquid month** by accident.
- **Forgetting the last trading day** or first notice day.
- **Comparing prices of different months** as if they were the same instrument.

## Frequently asked questions

### What are futures month codes?

Single letters representing contract months, from F for January to Z for December, used in futures symbols.

### What is the front month in futures?

The contract closest to expiry. It is often the most liquid, though volume may move to the next month before expiry.

### When do E-mini S&P 500 futures expire?

On the third Friday of March, June, September and December, settling to a special opening quotation of the S&P 500.

Next, learn how margin works in futures in [Futures Margin: Initial and Maintenance](https://learn.tradelabsai.com/futures/futures-margin/).

## Continue learning

- Next lesson: [Futures Margin: Initial and Maintenance](https://learn.tradelabsai.com/futures/futures-margin/)
- Previous lesson: [Tick Size and Tick Value](https://learn.tradelabsai.com/futures/tick-size-and-tick-value/)
- Related: [Tick Size and Tick Value](https://learn.tradelabsai.com/futures/tick-size-and-tick-value/): Tick size is a future's smallest price move; tick value is what it is worth per contract. Learn to calculate P&L, risk per trade and position size from ticks.
- Related: [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/): Rolling moves a futures position from an expiring contract to a later one. Learn when to roll, how to use calendar spreads, roll costs and common roll schedules.
- Related: [First Notice Day and Last Trading Day](https://learn.tradelabsai.com/futures/first-notice-day/): First notice day is when sellers can start delivering on physically settled futures. Learn what it means, how it differs from last trading day and how to plan.
- Related: [Contract Specifications](https://learn.tradelabsai.com/futures/contract-specifications/): Contract specifications define a futures contract's size, tick, months, hours and settlement. Learn every field, with examples for E-mini S&P, crude oil and gold.
- Related: [Options Expiration and Triple Witching](https://learn.tradelabsai.com/macro/triple-witching/): Triple witching is when stock options, index options and index futures expire together. Learn when it happens, why volume spikes and how traders prepare.
- Related: [Continuous Futures and Back-Adjustment](https://learn.tradelabsai.com/futures/continuous-futures/): Continuous futures stitch expiring contracts into one long price series. Learn back adjustment, ratio adjustment, roll rules and why they matter for backtests.