{"id":175910,"date":"2021-02-10T16:16:00","date_gmt":"2021-02-10T21:16:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/mechanics-of-futures\/"},"modified":"2023-04-25T21:04:10","modified_gmt":"2023-04-26T01:04:10","slug":"mechanics-of-futures","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/mechanics-of-futures\/","title":{"rendered":"TWS Futures Contract Demo"},"content":{"rendered":"<p>For those of you following along in TWS, this video aims show you how to add common contracts to the display.<\/p>\n<p>We will explain contract codes and months to help you quickly build them. We\u2019ll demonstrate how to add one or a strip of futures contracts to your display. For spread traders and for those wanting to roll a contract from one expiration to the next, we\u2019ll show you how to create a spread between two contracts.<\/p>\n<p>In TWS, futures symbols are specific to the exchange-listed contract, month and year of the product you are looking at. Yet there are several ways to arrive at displaying the information.<\/p>\n<p>If you know the symbol of the contract you want to add to the display, type it into a row on your monitor.<\/p>\n<p>In this case I\u2019ll use GC for gold.<\/p>\n<ul>\n<li>By entering GC, the contract selection box displays. Locate the exchange in which this contract trades Select \u2018Futures\u2019 and pick the relevant month.<\/li>\n<li>If the month you want is not displayed, click the \u2018more\u2019 button to find the relevant contract.<\/li>\n<li>You will notice that there are a few nearby contracts listed along with the so-called \u2018continuous\u2019 contract.<\/li>\n<li>The continuous contract refers to the contract where most investors are positioned and where open interest is concentrated.<\/li>\n<li>TWS will update as positions are rolled into the next expiry.<\/li>\n<\/ul>\n<p>To quickly add a specific expiration for a contract into TWS, you will need the product code and the symbol used to denote the month along with the final digit of the year in which the contract expires.<\/p>\n<p>For example, if I specifically wanted to display the December 2021 contract, we know that GC is the TWS symbol for gold and knowing that Z represents December we\u2019d enter <strong>GCZ1<\/strong>, where 1 represents 2021. Should you want the December 2022 contract, you\u2019d enter <strong>GCZ2<\/strong>.<\/p>\n<p>Here\u2019s a list of the futures month codes:<\/p>\n<p><strong>January\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 F<\/strong><\/p>\n<p><strong>February\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 G<\/strong><\/p>\n<p><strong>March\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 H<\/strong><\/p>\n<p><strong>April\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 J<\/strong><\/p>\n<p><strong>May\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 K<\/strong><\/p>\n<p><strong>June\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 M<\/strong><\/p>\n<p><strong>July\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 N<\/strong><\/p>\n<p><strong>August\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Q<\/strong><\/p>\n<p><strong>September\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U<\/strong><\/p>\n<p><strong>October\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 V<\/strong><\/p>\n<p><strong>November\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X<\/strong><\/p>\n<p><strong>December\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Z<\/strong><\/p>\n<p>To <strong>display multiple contract months<\/strong> at the same time, start with the TWS symbol, locate the exchange and select Futures.<\/p>\n<ul>\n<li>Select More and hold the control key down as you highlight the expirations you wish to add to your display. This is known as a <strong>futures strip<\/strong>.<\/li>\n<\/ul>\n<p>You can add all of your required futures contracts to a monitor page this way.<\/p>\n<p>To learn more about each contract, or to find out its trading hours and so on:<\/p>\n<ul>\n<li>click-right on the symbol and from the Financial Instrument Info row follow the arrow to view its Description.<\/li>\n<li>You will be able to see the exchange information, contract, expiration and last trading details as well as trading hours.<\/li>\n<li>Click through the Calendar hyperlink to get a visual on trading hours across the week.<\/li>\n<\/ul>\n<p>To display Futures related data in your monitor:<\/p>\n<ul>\n<li>right-click on any column header and choose Manage Columns to display the Configuration menu.<\/li>\n<li>From the Available Columns to the right of the display, locate and expand the Futures grouping and make your selections.<\/li>\n<li>Note that you should choose other column values from Financial Instrument Descriptions, Prices and High\/Low\/Volume\/History sections as usual.<\/li>\n<\/ul>\n<p>If you wish to add <strong>a spread between two contracts<\/strong>, you can use the convention of subtracting one contract from another.<\/p>\n<ul>\n<li>For example, for gold contracts, to add the spread between the December 2021 and June 2022 expirations type GCZ1-GCM2 and hit enter.<\/li>\n<li>You will see the bid\/ask prices and the chart display the recent history of the spread.<\/li>\n<li>Alternatively, enter GC in the Monitor, locate futures and select Combinations (Smart) and from the Combo Selection Tool, build the correct strategy.<\/li>\n<\/ul>\n<p>There is a lot of information in this video to help you locate futures contract details and symbols and how to add them to your Monitor page.<\/p>\n<p>To conclude this futures module &#8211;<\/p>\n<ul>\n<li>Futures are extremely efficient and low-cost investment opportunities<\/li>\n<li>Provide hedging and speculation without ever owning the underlying<\/li>\n<li>Ongoing transformation to electronic markets continues to lower trading costs<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Watch and learn how to put Futures contracts into practice.<\/p>\n","protected":false},"author":2,"featured_media":221426,"parent":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[13576],"traders-academy":[13125,13128,13132],"class_list":{"0":"post-175910","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - 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