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When is the best time to rollover a Futures position?

At times I am in a winning trade, and I do not want to roll over to the next month because I am afraid to lose points. Is there an automated way to roll over a position?

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As a general guide, we recommend using the liquid month, which means that you have to look at the daily volume as it is displayed on your futures trading platform. If a significant portion of the size has gone to the next month, we suggest that you roll over immediately.

The longer you wait, the worse you are off. If you get to First Notice Day or Last Trading Day and your if your futures broker comes and says “You need to get out” by then the liquidity would be so weak that the points you are afraid to lose are what you would be losing because the liquidity has dried up.

Whether you are trading physical commodities or financial futures, there is a time that liquidity will dry up, and the swings in such markets could be high while the ability to liquidate may result in a higher slippage.

Thank you,
Matt Z
Optimus Futures

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