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:
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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.
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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.
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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. 
Friday prior to the third Friday of the expiration month.
Deep Dive: Frequently Asked Questions About Rollovers (Including Micro Contracts)
For traders new to the concept of expiring contracts—especially those trading Micro E-minis (MES, MNQ)—the mechanics of a rollover can be confusing. Below are the specific technical details regarding timing, costs, and platform execution.
Q: Do Micro Futures (MES, MNQ) roll over at the same time as standard contracts? A: Yes. Since Micro contracts are derived from the standard E-mini indices, their liquidity shifts in sync. You should watch the volume of the standard contract (e.g., ES) to determine the rollover date. When the institutional volume shifts in the standard contract, the liquidity in the Micro contract follows immediately. You do not need to hunt for a separate “Micro” rollover date.
Q: How do I identify the correct “Volume Switch” date? A: You should not switch contracts based solely on the calendar date. Instead, watch the Volume of the expiring contract versus the new contract. Most active traders switch when the volume of the next quarter’s contract (e.g., September/U) exceeds the volume of the current contract (e.g., June/M). For equity indices (ES, MES, NQ, MNQ), this liquidity shift typically happens on the Thursday or Friday prior to the third Friday of the expiration month.
Q: Are there extra commissions for rolling over a position? (Warning for Micro Traders) A: Yes. A rollover is technically two separate trades: Closing the old month and Opening the new month. Standard commissions apply to both sides.
- Note for Micro Traders: Because Micro contracts have a smaller tick value, the commission cost represents a larger percentage of your trade’s value compared to standard contracts. Be mindful of “over-rolling” or churning positions unnecessarily, as execution costs can eat into small account balances faster.
Q: Does Optimus Flow automatically update my charts to the new contract? A: Optimus Flow allows users to enable Continuous Contracts or “Auto-Roll” settings for charting data. This stitches together historical data from previous months to create a seamless long-term chart for technical analysis. However, for Order Execution, traders must manually select the specific contract expiry (e.g., MESU5 to MESZ5) in the DOM to ensure they are executing orders where the liquidity currently resides.
Q: What happens if I forget to roll my position before the Last Trading Day? A: It depends on the contract specifications:
- Cash Settled (e.g., MES, MNQ): If you hold past expiration, the position is automatically closed out at the final settlement price, and the difference is credited or debited to your account.
- Physically Delivered (e.g., GC, CL): This is a critical risk. Holding physical contracts past the “First Notice Day” can result in a delivery notice. Note: Some Micro commodities (like Micro Crude Oil - MCL) are cash-settled, while others may follow physical rules. Always check the specific contract specs on the CME website or ask the Optimus trade desk if you are unsure.
Q: Do my Stop Loss and Take Profit orders roll over automatically? A: No. This is a critical risk to understand. When you roll a position, you are essentially closing one trade and opening a new one. Your existing Stop Loss and Take Profit orders attached to the expiring contract will not automatically transfer to the new contract. You must cancel your old orders and manually enter new Stop/Limit orders for the new contract month immediately after the roll is executed.
Q: Should I “Leg Out” of my position or use a Spread? A: Professional traders typically avoid “legging out” (closing one side and waiting to open the other) because market volatility can move against you in that split second, creating “slippage.” The safer method is to use a Calendar Spread order. This allows you to simultaneously Sell the expiring contract and Buy the new contract in a single transaction, locking in the price differential and eliminating the risk of the market moving while you are unhedged.
Matt Z