How to Roll Over to the Next Futures Contract (Beginner Guide)

[Mod-MattZ]

Hey Trader,

We often receive inquiries from beginner traders about how to roll over to the next futures contract. Here’s a straightforward guide:

Rolling over to the next futures contract is essential for traders as their current contract approaches expiration. Many beginners wonder how to do this, and it’s actually quite simple.

Futures contracts have expiration dates; they do not last indefinitely. If you want to maintain your position, you need to transition to the next available contract before the one you’re currently trading expires. This process is known as rolling over to the next contract.

Here’s how it works:

1. Know When to Roll Over – Traders typically roll over when the majority of trading volume shifts to the next contract. This transition happens before the expiration date, and you can monitor it by observing when more traders start focusing on the new contract instead of the old one.

2. Close Your Current Contract – You’ll need to exit your position in the contract that is about to expire. If you bought (went long), you should sell. If you sold (went short), you need to buy it back.

3. Open a New Position in the Next Liquid Month – After you’ve exited your old contract, open a position in the next futures contract that has the highest trading activity. This allows you to remain in the market without holding an expired contract.

That’s it! Rolling over simply involves closing your old contract and opening a new one in the next liquid month. If you ever need assistance in determining when or how to roll over, we’re always here to help you.

Have questions? Post Below.

Matt Z
Optimus Futures
www.optimusfutures.com