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What is the roll position in cryptocurrency trading?

avatarSneha Sagar DubyalaDec 27, 2021 · 3 years ago3 answers

Can you explain what the roll position means in the context of cryptocurrency trading? How does it affect trading strategies and risk management?

What is the roll position in cryptocurrency trading?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    The roll position in cryptocurrency trading refers to the process of extending or rolling over a futures contract to a later expiration date. This is done to maintain a position in the market without having to physically settle the contract. Traders often use the roll position to avoid delivery of the underlying asset and to continue their exposure to the market. It is an important aspect of trading strategies and risk management as it allows traders to adjust their positions and manage their exposure to price fluctuations. By rolling over contracts, traders can avoid potential delivery issues and maintain their desired market exposure.
  • avatarDec 27, 2021 · 3 years ago
    The roll position in cryptocurrency trading is when a trader extends their futures contract to a later date instead of settling it. This allows them to maintain their position in the market without having to physically deliver the underlying asset. It is a common practice among traders to avoid delivery and continue their exposure to the market. The roll position is an essential part of trading strategies and risk management as it allows traders to adjust their positions and manage their risk exposure. By rolling over contracts, traders can effectively manage their positions and avoid potential delivery complications.
  • avatarDec 27, 2021 · 3 years ago
    In cryptocurrency trading, the roll position refers to the action of extending a futures contract to a later expiration date. This is done to avoid physical delivery of the underlying asset and maintain exposure to the market. Traders often use the roll position as part of their trading strategies and risk management techniques. By rolling over contracts, traders can adjust their positions and manage their risk exposure to price fluctuations. It is important to note that the roll position can vary depending on the specific cryptocurrency exchange and the terms of the futures contracts offered. It is advisable to consult the exchange's documentation or seek professional advice to fully understand the roll position and its implications for trading.