Equity index futures

    How do Index Futures contract rollovers create pricing discrepancies on historical continuous charts?

    By Easy Money Scanner · Educational reference · Not investment advice

    The short answer

    Rolling index futures contracts can create price gaps on continuous charts because front-month contracts carry different premiums or discounts at rollover.

    How it works

    Chart providers often adjust historical data using back-adjustment methods to smooth these rollover-driven discontinuities for technical analysis.

    An example

    An unadjusted continuous ES chart may show an artificial gap at each quarterly roll.

    Risk & limitations

    Unadjusted continuous charts can mislead technical analysis near rollover dates.

    Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

    Sources & further reading

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