In the world of trading, rollover is a term that you'll likely come across, especially when trading futures or other derivative contracts. Rollover refers to the process of closing a position in an expiring contract and opening a new one with a later expiration date. In this article, we will discuss what rollover is, how it works, and the way it impacts your positions when trading with ITCS Trade.
What is Rollover?
Rollover occurs when a trading position in a futures or other derivative contract reaches its expiration date. Instead of letting the position expire and potentially incurring a loss, traders can choose to "roll over" the position to a new contract with a later expiration date. This allows traders to maintain their exposure to the underlying asset without having to close the position and reopen it in a new contract.
How ITCS Trade Handles Rollover:
At ITCS Trade, we understand the importance of a seamless rollover process for our clients. We automatically adjust the position that has been rolled over to a new contract, ensuring that you neither lose nor earn money in the rollover process. This automatic adjustment takes place based on the difference in the prices of the expiring and new contracts.
Monitoring Upcoming Rollovers:
With ITCS Trade, you can easily keep track of upcoming rollovers by checking the instrument info on our platform. The rollover date will be clearly displayed in the charts, allowing you to stay informed about when your positions will be affected. Additionally, if you have an open position that will be rolled over to a new contract, you will receive a notification from ITCS Trade, ensuring that you are aware of the upcoming change.
Rollover is an essential aspect of trading futures and other derivative contracts, as it allows traders to maintain their exposure to the underlying asset without having to close and reopen positions. ITCS Trade simplifies the rollover process by automatically adjusting positions to new contracts, ensuring a seamless transition for our clients. By staying informed about upcoming rollovers and understanding how they impact your positions, you can better manage your trading strategy and make more informed decisions in the market.