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How does the future rollover process work in the cryptocurrency market?

avatarOsman JustesenDec 26, 2021 · 3 years ago3 answers

Can you explain the process of future rollover in the cryptocurrency market? How does it work and what are the implications for traders?

How does the future rollover process work in the cryptocurrency market?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Sure, let me break it down for you. Future rollover in the cryptocurrency market refers to the process of closing out an existing futures contract and simultaneously opening a new contract for the same underlying asset. This is done to avoid physical delivery of the asset and to maintain a continuous trading position. Traders typically roll over their futures contracts before the expiration date to avoid any disruptions in their trading strategies. It's important to note that the rollover process may involve additional costs, such as fees and spreads, which traders need to consider.
  • avatarDec 26, 2021 · 3 years ago
    The future rollover process in the cryptocurrency market is quite straightforward. When a futures contract is nearing its expiration date, traders have the option to either close their position or roll it over to a new contract. Rolling over involves selling the current contract and simultaneously buying a new contract with a later expiration date. This allows traders to maintain their exposure to the underlying asset without having to take physical delivery. It's a common practice among traders who want to continue their positions and avoid any potential disruptions in the market.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to future rollover in the cryptocurrency market, BYDFi offers a seamless and efficient process. Traders can easily roll over their futures contracts by closing the current contract and opening a new one with just a few clicks. BYDFi provides a user-friendly interface that allows traders to manage their positions effectively. With competitive fees and a wide range of available contracts, BYDFi is a popular choice for traders looking to roll over their futures contracts in the cryptocurrency market.