What are the advantages and disadvantages of rollover in the digital currency industry?
KavexshajayawardhanaDec 28, 2021 · 3 years ago1 answers
Can you explain the benefits and drawbacks of rollover in the digital currency industry? How does it affect traders and investors?
1 answers
- Dec 28, 2021 · 3 years agoRollover in the digital currency industry is a feature that allows traders to extend the settlement date of their trades. It can be beneficial for traders who want to hold onto their positions for longer periods of time. By extending the settlement date, traders can avoid closing and reopening their positions, which can save on trading fees. However, there are also some disadvantages to rollover. It exposes traders to overnight market risks, as prices can change significantly during this time. Additionally, rollover fees can eat into profits, especially for frequent traders. It's important for traders to carefully consider the advantages and disadvantages of rollover before using it in their trading strategy.
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