What does roll position mean in the context of cryptocurrency trading?

1 answers

• Dec 26, 2021 · 3 years ago
  In the context of cryptocurrency trading, roll position refers to the act of extending a futures contract to a later expiration date. When a trader holds a futures contract that is nearing its expiration, they can choose to roll it over to a new contract with a later expiration date. This allows them to maintain their trading position without having to close it. Rolling a position involves closing the current contract and simultaneously opening a new one. Traders often roll positions to avoid physical delivery of the underlying asset or to adjust their exposure based on market conditions. It's a common strategy used by cryptocurrency traders to manage their positions and maintain their desired market exposure.
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