What is the roll yield formula used in cryptocurrency trading?

3 answers

• samy swifMar 05, 2025 · 8 months ago
  The roll yield formula used in cryptocurrency trading is a calculation that takes into account the difference between the futures price and the spot price of a cryptocurrency. It is used to determine the potential profit or loss from holding a futures contract until its expiration date. The formula is typically calculated as the difference between the futures price and the spot price divided by the number of days until expiration. This calculation helps traders assess the potential gains or losses from holding a futures contract and make informed trading decisions.
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• Purab RahangdaleOct 17, 2023 · 2 years ago
  The roll yield formula in cryptocurrency trading is a way to measure the potential profit or loss from holding a futures contract. It considers the difference between the current price of the cryptocurrency and the expected future price at the contract's expiration. By calculating this difference and factoring in the time remaining until expiration, traders can assess the potential gains or losses from holding the contract. This formula is important for traders who engage in futures trading as it helps them evaluate the profitability of their positions and make informed trading decisions.
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• Adams SchouAug 25, 2020 · 5 years ago
  When it comes to the roll yield formula used in cryptocurrency trading, it's important to understand that it can vary depending on the specific cryptocurrency and futures contract being traded. However, a common approach is to calculate the difference between the futures price and the spot price, and then divide it by the number of days until expiration. This calculation helps traders assess the potential gains or losses from holding a futures contract and make informed trading decisions. It's worth noting that the roll yield formula is just one tool among many that traders use to evaluate the profitability of their positions.
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