What is roll?Roll
Closing a contract that's about to expire and opening the next month's contract to keep the position going.
Learn “roll” in an animated lesson
- Futures BasicsRolling Futures Contracts
Futures expire. To hold for the long run, you close the near month and buy a later month before expiry, which costs money in contango.
- Hedging StrategiesThe Hidden Costs of Hedging: Rolling and Margin
Roll near-month futures to hedge for a whole year and the price risk is locked on paper, but every roll costs money and margin needs cash. A hedge can also die from cash flow.
Related terms
See how “roll” works for yourself with an animation you can drag and play.
Go to “Rolling Futures Contracts”