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What is a roll over in the context of cryptocurrency trading?

avatarMusawer SeeratDec 16, 2021 · 3 years ago3 answers

Can you explain what a roll over means in the context of cryptocurrency trading? How does it work and what are its implications for traders?

What is a roll over in the context of cryptocurrency trading?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    A roll over in cryptocurrency trading refers to the process of extending the expiration date of a futures contract or a margin trade. It allows traders to maintain their positions beyond the original expiration date by closing the existing position and simultaneously opening a new one with a later expiration date. This can be useful for traders who want to hold their positions for a longer period or to avoid the need to physically settle the contract. However, it's important to note that roll overs may incur additional fees and can be subject to market conditions and liquidity. Traders should carefully consider the implications and costs of roll overs before deciding to use this strategy.
  • avatarDec 16, 2021 · 3 years ago
    In the context of cryptocurrency trading, a roll over is when you extend the duration of your futures contract or margin trade. It's like hitting the snooze button on your trade, allowing you to keep your position open for a longer period. This can be beneficial if you believe the market will continue to move in your favor or if you want to avoid the hassle of closing and reopening positions. Just keep in mind that roll overs may come with additional costs and risks, so make sure to weigh the pros and cons before making a decision.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to cryptocurrency trading, a roll over is a way to extend the expiration date of your futures contract or margin trade. It's like giving your trade a new lease on life. Instead of closing your position and starting from scratch, you can simply roll it over to a new expiration date. This can be handy if you're not ready to let go of your position yet or if you want to take advantage of potential future price movements. However, keep in mind that roll overs may come with fees and other considerations, so make sure to do your research and understand the implications before rolling over.