Futures · Pro
Contract rollover
Also searched as: futures roll
What does Contract rollover mean?
Contract rollover replaces exposure in an expiring futures contract with exposure in a later contract. It involves closing one contract and opening another.
Example
A trader sells the nearby long contract and buys the next listed month.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
The two contracts may have different prices and liquidity; rollover is not a free extension of the original trade.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.