Skip to main content

What Does ‘Rolling Over’ a Traditional Futures Contract Mean?

Rolling over a futures contract means closing the expiring near-month contract and simultaneously opening a new, identical contract in a further-out month. This action allows a trader to maintain their market position without interruption and avoid physical or cash settlement of the expiring contract.

It is a common strategy for speculators who do not wish to take delivery and want to keep their exposure to the underlying asset.

What Is a ‘Calendar Spread’ in Futures Trading?
Why Is ‘Rolling’ a Futures or Option Position a Common Practice in Long-Term Hedging?
How Is the Holding Period Affected by Rolling over a Futures Contract?
What Is “Roll Over” and How Does It Apply to Traditional Futures?