The continuous contract

Trader's Glossary · Contracts and markets

Definition. A chart that joins successive futures contract months into a single data series, so a longer history can be analysed without breaks at expiration.

How it works

The platform switches from the expiring contract to the next one, by date or by volume. It can also adjust for the price difference between contracts to avoid an artificial gap on the chart.

Example

Monthly profiles and long-period moving averages are usually calculated on the continuous contract, because a single contract month has only a few months of active history.

What to watch out for

Different ways of joining give different levels. It's worth knowing how the continuous contract is defined in your platform.

See also

Rollover, Basis (fair value), Volume profile.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.