What does Rollover mean?
What does Rollover mean? Find a clear answer in this FAQ by 021 Trade.
Rollover in Futures Trading
Rollover refers to carrying forward an existing futures position by shifting it from a contract nearing expiry to a new contract with a later expiry date. This is done by closing the current contract and simultaneously opening a similar position in the next month’s contract.
For example, if you are holding a November futures contract for a stock and it is close to expiry, you can roll over your position by selling the November contract and buying the December futures contract.
It is important to note that rollover is applicable only to futures contracts and is not available for options contracts
