• Tue. May 21st, 2024

How to Rollover a Futures Position Trading Nano Bitcoin Futures


Jul 25, 2022
Nano Bitcoin Futures


Every futures contract has a limited lifespan known as an expiration date that requires a trader to either exit their current position or “rollover” their position to a new version of the contract expiring at later date Simply put, “rolling over” a position means taking the same position in a contract with a later expiration date. Based on the market, some futures contracts expire monthly or quarterly.

What is a Nano Bitcoin Futures Rollover?

Just like with all futures products, Nano Bitcoin has a rollover date too. These contracts expire the last Friday of every month. If that month’s Friday is not a trading day, then the preceding trading day is used.

It is important to note that two months’ worth of contracts are listed at the same time

  1. The current month that’s trading now
  2. The next month that will begin trading after the current month’s contract expires

Now, unlike with milk, where you may be tempted to drink it even after the expiration date that’s printed on the container, futures contracts can’t be traded after their expiration date.

You might ask, but what if I have a position in Nano Bitcoin futures that I want to maintain, but the current contract is about to expire? Not a problem, you roll that position over to the next month.

Watch this short video to understand more about contract rollover dates

How do I Know When to Rollover the Nano Bitcoin Contract?

Ultimately it is up to the individual trader when to roll based on factors including volume, liquidity and time remaining till expiration. However, you need to do this prior to the contract expiring on the last Friday of the month. So, you must, at the latest, rollover your contract on the last Thursday of the month prior to the expiration date.

For example:

Let’s say you bought 5 Nano Bitcoin futures August contracts. The August contracts are getting close to expiration, but you’d like to maintain the position you currently have. Simply sell 5 August contracts and buy 5 September contracts. This closes the August contracts position and establishes a new and equal position using the September contracts.

Start Trading Nano Bitcoin with NinjaTrader

If you are already trading futures and have a desire to test the waters in crypto speculation, Nano Bitcoin futures may be just what you need to dive in. Open your NinjaTrader futures account and trade Nano Bitcoin futures commission-free with only $25 margins and $0 market data fees.

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Image and article originally from ninjatrader.com. Read the original article here.