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How does the concept of roll over apply to the cryptocurrency market?

avatarSchmidtDec 25, 2021 · 3 years ago3 answers

Can you explain how the concept of roll over is relevant in the context of the cryptocurrency market? What does it mean and how does it affect traders and investors?

How does the concept of roll over apply to the cryptocurrency market?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    In the cryptocurrency market, the concept of roll over refers to the practice of extending the maturity date of a futures contract by closing the existing position and opening a new one with a later expiration date. This allows traders to maintain their exposure to the underlying asset without having to physically settle the contract. Roll over can be beneficial for traders who want to continue their positions without incurring additional costs or taking delivery of the asset. It is commonly used in futures trading to manage risk and maintain market exposure. 😉
  • avatarDec 25, 2021 · 3 years ago
    Roll over in the cryptocurrency market means extending the expiration date of a futures contract. Traders can choose to roll over their positions by closing the current contract and opening a new one with a later expiration date. This allows them to maintain their market exposure without having to settle the contract. Roll over can be useful for traders who want to avoid physical delivery of the underlying asset or adjust their positions based on market conditions. It is a common practice in futures trading and can help manage risk and optimize trading strategies. 👍
  • avatarDec 25, 2021 · 3 years ago
    Roll over is a concept that applies to the cryptocurrency market as well. When traders hold futures contracts that are about to expire, they have the option to roll over their positions by closing the existing contract and opening a new one with a later expiration date. This allows them to continue their exposure to the underlying asset without having to settle the contract. Roll over can be a strategic move for traders who want to maintain their positions and adapt to market conditions. It is an important tool in futures trading and can help traders manage risk and maximize their trading opportunities. By the way, at BYDFi, we offer a seamless roll over process for our users. 😉