InvestorQ : What are the specific contracts of commodities like and what are their expiry dates for such contracts?
Rutuja Nigam made post

What are the specific contracts of commodities like and what are their expiry dates for such contracts?

Answer
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Riya Dwivedi answered.
1 year ago


First we need to understand the contract structure of commodity futures properly. Let us take the instance of trading in crude oil futures. The crude oil contract expires on the 19th of each month. Each month a new 6-month farther-contract will be issued. For example for the month of December 2017, the crude oil contract will expire on 19th December. On 20th December, a new June 2018 contract will be issued. Like in equity futures, the trading is concentrated more on near month contracts. Unlike equity futures, all commodity futures do not expire on the same date but they differ from commodity to commodity. The complete schedule is available on the website of the commodity exchanges and also of SEBI, which is the regulator for commodity futures trading.

What about the tenure and expiry of the commodity futures contract? As we discussed earlier, commodity futures are also available on monthly contracts. Typically, in case of most commodities you will get commodity futures for the next 6 monthly contracts. Unlike equity futures, which expire on the last Thursday of the month, there is no fixed date for commodity futures. They vary from 17th of the month to 28th of the month and the date is different for every commodity depending on the specific economics of the commodity.