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How big is the gap when the new futures contract comes out?
This gap in futures is the alternation of old and new futures contracts, which leads to inconsistent market trends. Before the gap, it is the trend of the expiration of the old contract, and after the gap, it is the trend of the new contract. Like the above picture, this is the daily chart of rapeseed meal futures contract 1409. We can see that there is a big gap in the circle. The market after the gap is actually the market trend of rapeseed meal contract 409. Before the gap is the old contract, the position before the expiration is gone, so it has nothing to do with the gap of the new contract, because it is two different contracts. After the expiration of the old contract, the market repositioned the price of 409. Because of the uncertainty of forward contracts, gaps usually appear when new and old contracts alternate, especially for agricultural products.