Why is is standard practice to roll futures to the front month rather than back month contract?
With most standard practices, there must be a reason I'm assuming practitioners have worked out that it's more beneficial but I would like to know why.
If one wanted constant exposure, rolling to the back month contract would allow the least work and trading costs.
From my little bit of reading, is it because of more liquidity and and tighter spreads with the front month contract?
Submitted May 24, 2020 at 09:51PM by DiscombobulatedTop https://ift.tt/36plMFk
