Can you explain how rollover functions in the world of cryptocurrencies?

3 answers

• Daxit ThesiyaJan 31, 2022 · 4 years ago
  Rollover in the world of cryptocurrencies refers to the process of extending the expiration date of a futures contract by closing the existing contract and opening a new one with a later expiration date. This allows traders to maintain their position in the market without having to physically settle the contract. Rollover is commonly used by traders who want to avoid taking delivery of the underlying asset and instead prefer to speculate on the price movements. It is important to note that rollover fees may apply when extending the contract.
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• ii_LeoSep 12, 2024 · a year ago
  Sure! Rollover in cryptocurrencies is like hitting the snooze button on your alarm clock. When a futures contract is about to expire, instead of settling it, you can roll it over to a new contract with a later expiration date. This allows you to keep your position open and continue trading without interruption. It's a convenient feature for traders who want to maintain their exposure in the market without having to physically settle the contract. Just be aware that there may be fees associated with rolling over a contract, so make sure to factor that into your trading strategy.
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• Paramanathan ThushanthanApr 12, 2025 · 8 months ago
  Rollover functions in the world of cryptocurrencies by allowing traders to extend the duration of their futures contracts. This is done by closing the existing contract before it expires and opening a new one with a later expiration date. The rollover process ensures that traders can maintain their positions in the market without the need for physical delivery of the underlying asset. It's a common practice among traders who want to speculate on the price movements of cryptocurrencies without actually owning them. However, it's important to consider the fees associated with rollover transactions, as they can impact your overall trading costs.
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