Any downside of choosing "continuous" ES futures?

[Scataphagos]

Should be careful using the word premium here as it's fundamentally wrong. Premium in market financialization has to do with an amount over fair value

What governs the contract value is either supply/demand vs time value. It has nothing to do with premium.

Furthermore, the current ES term structure is backwardated. So as he rolls, the value goes down, not up, in this instance.

If the difference between the futures and cash is a negative like it is now, usually (or at least used to be) referred to as "negative premium"... still maintaining the "premium" moniker by convention.

Years back when interest rates were higher, the futures traded at a premium over the cash.

(If interested, I'll introduce you to my wife. She also likes to argue minutiae)

 

[ballsofgold]

right so that is how the locals used to speak, fair enough, i cease and desist -)

 

[AdolfoDellucci]

The major downside to consider with the continuous futures is that you can have no control over the future events coming, any sort of price fluctuations and the possible reduction in the asset prices, especially when the expiration date keeps coming closer. So, you have to be very alert with the market if you are into the continuous futures.

 

[virtusa]

right so that is how the locals used to speak, fair enough, i cease and desist -)

Are you afraid of Scat's wife???

 

[Sig]

The major downside to consider with the continuous futures is that you can have no control over the future events coming, any sort of price fluctuations and the possible reduction in the asset prices, especially when the expiration date keeps coming closer. So, you have to be very alert with the market if you are into the continuous futures.

What is up with these captain obvious posters in the last day with one or two posts. It seems someone is testing out a bot of some sort on ET, but to what end?

 

[ballsofgold]

Are you afraid of Scat's wife???

on the contrary, I'd love to meet her. And then after that, who knows.........

but it doesn't change that he was right. Locals used to refer to it as premium and negative premium