Futures Traders Need To Watch Rollover Dates

Futures contracts are written for a specific, finite time period which means they must be rolled over on a regular basis to remain viable. Some contracts, such as crude oil, expire and need to be rolled monthly. Others, such as cotton or gold, expire and can be rolled only on certain specific months of the year. Expiration dates are specified in the contract and will vary with the asset being traded. Before you buy a contract, you should know what the expiration date is and what your rollover options are. Rollover dates are standardized for contracts of different asset classes and are set by each exchange. It’s important to know and track the specific expiration dates and requirements of futures contracts you purchase so that you don’t miss those all important rollover dates.

For most futures contracts traded on the Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT), the following expiration and rollover practices apply:

  • Contracts expire on the third Friday of each quarter: March, June, September and December. Contract expiration months are represented by the following letter assignments: March=H, June=M, September=U and December=Z
  • Rollover is 8 days before expiration. For example, this month, December 2007, the rollover date is Thursday, December 13.
  • Rollover is always on a Thursday. Generally, rollover will be on the second Thursday of the month; however, if the first day of the month begins on a Friday, rollover will be on the first Thursday of the month.
  • Trading volume shifts to the new contract at market open on rollover day (9:30 a.m. EST).
  • New day trading or swing trading positions opened on rollover day should utilize the new contract expiration month irrespective of when you plan to close your position.
  • If opened within a few days of rollover day, new swing positions should be opened using the new contract.

Market myths and rumors abound as expiration and rollover dates come due. Savvy futures traders will always check the source, study their market indicators and confirm the probabilities of the rumor before acting.

For more information, 11 free trading lessons and a free ebook, visit Futures Trading Secrets.

Related Posts

Tags: , , , , , , , , , , ,

Bookmark using any bookmark manager

Subscribe without commenting

58 Responses to “Futures Traders Need To Watch Rollover Dates”

  1. theneuralinvestor Says:

    I tend to roll contracts the month before the expiration, mainly because I’ve seen price action get even more unpredicatble as contracts near expiry dates. There is always a trade off though, roll too early and you enter a contract with very little trading volume. Is there an ‘ideal’ time to roll?

  2. CFD Trading Says:

    CFDTrading.com is a leading source of CFD news and insights, including research and signals for Contracts for Difference (CFD) trading. We help answer all your CFD questions with our daily, expertly written articles, and extensive up-to-date charts and reports on the state of the worldwide CFD market.

  3. Forex Says:

    FXCM Micro is for traders who prefer the flexibility and convenience of trading in small (1K, 2K) lots, but are not willing to sacrifice tight spreads or quality execution. With FXCM Micro, you can open an account with as little as $25, yet trade with competitive spreads.

  4. Futures Options Trading Says:

    Trade options like a pro, using Delta Neutral, Calendar Spreads, Option Scale Trading and other Option Secrets.

  5. Webmaster Forums Says:

    I found your site on google, great site, keep it up. Will return in the future. Submitted this post to Google News Reader.

  6. Austin TX Apartment Search Says:

    If you are planning to re-locate or shifting permanently to memphis, than austin TX apartment search is the best solution for your requirements.

  7. Used TVR Says:

    Used TVR

  8. Martha Stewart Furniture Says:

    Martha Stewart Furniture New York NYC New Jersey Stamford Paramus

  9. sprachreisen Says:

    sprachreisen

  10. Dodge Prices Says:

    Dodge Prices

  11. :Find Apartments Downtown Memphis TN Says:

    We can guide you to find apartment in downtown Memphis TN. We have lot of exciting options for you.

  12. Find Apartments Downtown Memphis T Says:

    We can guide you to find apartment in downtown Memphis TN. We have lot of exciting options for you.

  13. Apartment in memphis Says:

    Memphis Apartments has always been very exciting for everyone. Find apartment in memphis at http://www.southbluffsapartments.com

  14. Liability insurance Says:

    Liability insurance

  15. Foreign exchange Says:

    Foreign exchange

  16. ribbon Says:

    BBCrafts specializes in ribbon, tulle, satin cords, organza bag, wedding accessory and wedding favor. Located in Southern California, BBCrafts is one of the largest ecommerce businesses for crafts and wedding related products.

  17. Car Insurance quotes in Alberta Says:

    If You are Looking for car insurance quotes in Alberta? At http://www.kanetix.ca, in just a few minutes you’ll be able to find and compare numerous Car Insurance quotes in Alberta instantly online and save both time and money.

  18. South Africa wildlife volunteer work Says:

    South Africa wildlife volunteer work

  19. Whole of life insurance Says:

    Whole of life insurance

  20. Get Online No Fax Payday Loans Says:

    Short of cash at the end of month - We provide no fax payday loans. This service is available nationwide, apply now for your payday loan and get cash directly deposited into your account overnight.

  21. Play Super Mario Says:

    Play Free Mario Games Online

  22. Download Spellen en Games Says:

    Download Spellen en Games

  23. Business Lists Says:

    Business Lists

  24. commercial business financing Says:

    commercial business financing

  25. truck insurance Says:

    truck and hgv insurance from The Plan Group

  26. iphone 3g unlock Says:

    Unlock your iPhone today using our revolutionary 1 click software, all versions including iPhone 3G and iPhone 2.2.1. Unlocking the iPhone takes 2 minutes, no computer knowledge required. Includes lifetime support and software updates.

  27. Virgin prepaid Card Says:

    Virgin prepaid Card

  28. Automobile Insurance Says:

    Insurance companies need to offer competitive rates if they are going to stay in business. Shopping around for the best possible combination of rates and coverage makes sense for today’s consumers. You can start this process right now by using the free insurance quote tool on this page

  29. Annuity Payments Says:

    SovereignFunding offers non risk settlement services including buying and selling structured settlements, annuity payments and lottery winnings. A leader providing fast cash now service for your settlements and annuities!

  30. Online Scratch Cards & Scratch Off Tickets Says:

    Play Scratch Cards for Fun or for Money. Variety of Scratch Off Cards and Tickets for your Selection. Get a Chance to Win Real Money and Great Prizes by Playing our Unique Scratch Off Games.

  31. remortgage Says:

    remortgage

  32. Interest Free Credit Cards Says:

    Interest Free Credit Cards

  33. Credit Card Application Says:

    Credit Card Application

  34. 0 Interest Credit Card Says:

    0 Interest Credit Card

  35. 0 Credit Card Says:

    0 Credit Card

  36. Trade School Online Vocational Schools Says:

    Easily find and compare popular trade schools and colleges. Easily review and compare popular vocational schools and colleges. View the latest trade schools & colleges from campus and online institutions.

  37. Casino Online Says:

    Casino Online Casino Online Casino Online Casino Online Casino Online

  38. debt management credit counseling corp Says:

    Helpful information to help you anchor yourself in financial freedom with a few simple steps. We work to provide you with helpful credit and debt counseling services.

  39. Over 50 life insurance Says:

    Over 50 life insurance - comparing over 50 life insurance quotes online from the most popular over 50s life insurance

    companies. – try insuranceextra.com to get life insurance quote online and find best policy to suit you.

  40. Invoice Factoring Says:

    Invoice Factoring

  41. Pressure Washing in Virginia Says:

    Virginia company offers cleaning services to customers in Hampton Roads, Va. Services include window cleaning, power washing, caulking, parking lot services and holiday lighting.

  42. COLOR CATALOG AND MAGAZINE PRINTING Says:

    So. California color printing company, catalog printing specialists, brochure printing specialists, presentation folder printing, magazine printing, offset printing

  43. time and billing software Says:

    Thanks for the knowledge on…….

  44. Kyle Says:

    Great website and course, Bill.

  45. Financial Advisor Colorado Springs Says:

    A Fee-only, Colorado Springs-based financial planning, investment and wealth management advisory firm. Provides comprehensive advice about investments, retirement, college, wealth management planning.

  46. Bathroom cabinets Says:

    Visit Bathrooms 4U for low prices on luxury bathroom products. Find bathroom suites, funrniture, showers, baths, sanitaryware and accessories.

  47. Shoe Shop Says:

    Shoe Shop

  48. Jugendreisen in Englisch Says:

    Jugendreisen in Englisch

  49. used dodge durango Says:

    New day trading or swing trading positions opened on rollover day should utilize the new contract expiration month irrespective of when you plan to close your position.

  50. CD Replication Says:

    CD Replication

  51. High School Jahr USA Says:

    High School Jahr USA

  52. High School Jahr Australien Says:

    High School Jahr Australien

  53. High School Jahr Kanada Says:

    High School Jahr Kanada

  54. Sprachreisen Südafrika Says:

    Sprachreisen Südafrika

  55. Gaming4.US Says:

    Gaming4.US

  56. cruceros Says:

    cruceros

  57. Vouchers Says:

    Use the Voucher Seeker website to get promotions and discount vouchers throughout the UK.

  58. IVA Says:

    An IVA is an alternative to bankruptcy and is one of the best ways to save you from a lifetime of debt. Contact Harrington Brooks to find out if an IVA is the right financial solution for you.

Leave a Reply