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How does the rollover process work for futures contracts in the cryptocurrency market?

avatarclaudineNov 30, 2021 · 3 years ago3 answers

Can you explain the rollover process for futures contracts in the cryptocurrency market? How does it work and what are the key factors to consider?

How does the rollover process work for futures contracts in the cryptocurrency market?

3 answers

  • avatarNov 30, 2021 · 3 years ago
    The rollover process for futures contracts in the cryptocurrency market involves the transfer of open positions from one contract month to another. This is done to ensure continuous trading and avoid physical delivery of the underlying asset. Traders need to close their positions in the expiring contract and open new positions in the next contract month. The process usually takes place a few days before the expiration date. It's important to consider factors such as liquidity, market sentiment, and rollover costs when deciding whether to rollover or close the position.
  • avatarNov 30, 2021 · 3 years ago
    When it comes to the rollover process for futures contracts in the cryptocurrency market, it's all about transitioning from one contract month to another. Traders have to close their positions in the expiring contract and open new positions in the next contract month. This allows them to continue trading without interruption. However, it's crucial to keep an eye on factors like market liquidity and rollover costs. These can have an impact on the decision to rollover or close the position. So, make sure to consider these factors before making a move.
  • avatarNov 30, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, offers a seamless rollover process for futures contracts. Traders can easily transition from one contract month to another by closing their positions in the expiring contract and opening new positions in the next contract month. BYDFi provides competitive rollover costs and ensures continuous trading for its users. When considering the rollover process, it's important to choose a reliable exchange like BYDFi that offers a smooth experience and takes care of its users' needs.