Thursday, January 10, 2013

Understanding and reading futures contract

When I started to trade oil - CL. I don't quite understand what is CLG0. I search across the web and I would like to share these piece of information to those who think they might be having same problem.

CL is the ticket symbol for Light Crude Oil. In futures contract there will be a month as well and most futures following the convention of (Jan = F, Feb = G, Mar = H, Apr = J, May = K, Jun = M, Jul = N, Aug = Q, Sep = U, Oct = V, Nov = X, Dec = Z) an the litter number 0 means 2010 or 1 for 2011 and 2 for 2012.

So CLG0 means CL Feb 2010 contract.
There might be different formula as well but the above is most widely use.



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