How does the concept of roll over futures apply to digital currencies?

3 answers

• JM editorMay 05, 2025 · 4 months ago
  Roll over futures is a concept that applies to various financial markets, including digital currencies. In simple terms, it refers to the process of extending the expiration date of a futures contract by closing the existing contract and simultaneously opening a new one with a later expiration date. This allows traders to maintain their exposure to the underlying asset without having to physically settle the contract. In the context of digital currencies, roll over futures enable traders to speculate on the future price movements of cryptocurrencies without actually owning them. It provides a way to profit from both rising and falling prices, as traders can take long or short positions accordingly.
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• K.AishwaryaApr 20, 2025 · 4 months ago
  When it comes to digital currencies, roll over futures can be particularly useful for hedging purposes. Cryptocurrencies are known for their volatility, and roll over futures allow traders to protect themselves against adverse price movements. For example, if a trader holds a significant amount of Bitcoin and is concerned about a potential price decline, they can enter into a roll over futures contract to offset any potential losses. By taking a short position in the futures market, they can profit from the price decline and mitigate the impact on their Bitcoin holdings. This hedging strategy can help manage risk and protect investments in the volatile cryptocurrency market.
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• So PheakJul 26, 2023 · 2 years ago
  BYDFi, a leading digital currency exchange, offers roll over futures contracts for various cryptocurrencies. Traders can easily access these contracts through the BYDFi platform and take advantage of the benefits they provide. With BYDFi's user-friendly interface and advanced trading features, traders can efficiently manage their roll over futures positions and capitalize on market opportunities. Whether you're a seasoned trader or just starting in the world of digital currencies, BYDFi's roll over futures can be a valuable tool in your trading arsenal.
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