Rollover on futures
- 19 Mar 2024
- 1 Minute to read
Rollover on futures
- Updated on 19 Mar 2024
- 1 Minute to read
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What is the rollover?
Rollover refers to the process of extending or shifting the expiration date of a futures contract by closing out an existing position and simultaneously opening a new position in a contract with a later expiration date. The rollover allows you to maintain exposure to the underlying asset beyond the original contract's expiration.
Relevant dates on Zero futures contracts
Each Zero future contract at Zero has 3 different key dates:
- Trading available date: It refers to the date in which each contract is open and available to trade with. Normally, it will be around 10 days before the date of close of the previous expiration contract.
- Close only date: When the close only date is triggered, no more new trades will be allowerd for this expiration contract. If you want to trade with the instrument, you would need to open the next expiration contract. It will be few days before the date of close.
- Date of close: All open trades would be closed at this point.
Rollover is not automatically placed
If you have an open position on a contract and it reaches the date of close, the trade will be closed and no trade will be opened in the new expiration contract.
The rollover must be executed by closing the trade in closer expiration contract and opening the same trade in the next expiration contract
You can watch more information in the following video:
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