What is Futures Rollover in NSE India?

Futures rollover means closing an existing futures position in the “current” expiry contract and taking a similar position in a “later” expiry contract. For example:

• Suppose a trader holds a long NIFTY futures position expiring in October. 
• Instead of closing the market exposure completely, the trader can:
  • Sell the October futures contract.

and

• Buy the November futures contract.

Consequently, the October position is closed, and the November position becomes the new futures position.

How to Rollover a Futures Position

To roll over a futures position, the trader must execute two transactions:

Furthermore, for a long position, the Futures rollover means selling the near-month contract and buying the next-month contract. For a short position, the transactions are reversed.

Note that the price difference may arise between the two expiry contracts, which is known as the “roll spread”. Thus, rolling a position is not the same as extending the original contract at the same price.

Manage Futures Positions Across Expiries With Trade246

Trade246 is a multi-asset trading platform offering access to 7 different market platforms, including NFO (Nifty Futures and Options) and NSE equities, US Stocks, Indices, Forex, Commodities, and Crypto from a single dashboard.

Register today and track real-time market prices. Also, get unlimited access to advanced TradingView charts, 100+ technical indicators, and professional drawing tools. Plus, use our pre-trade calculators to assess margin and other trade parameters.