How to Rollover a Futures Position Trading Nano Bitcoin Futures

Each futures contract has a limited lifespan known as an expiration date which requires a trader to either exit their current position or “roll over” their position in a new version of the contract that expires at a later date. position means taking the same position in a contract with a later expiration date. Depending on the market, some futures contracts expire monthly or quarterly.

What is a Nano Bitcoin Futures Rollover?

As with all futures products, Nano Bitcoin also has a rollover date. These contracts expire on the last Friday of each month. If Friday of that month is not a trading day, the previous trading day is used.

It is important to note that the two-month contracts are listed at the same time

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

Now, unlike milk, where you might be tempted to drink it even after the expiration date printed on the container, futures cannot be traded past their expiration date.

You might be wondering, but what if I have a Nano Bitcoin Futures position that I want to hold, but the current contract is about to expire? No problem, carry this position over to the next month.

Watch this short video to learn more about contract renewal dates

How do I know when to renew the Nano Bitcoin contract?

Ultimately, it is up to each individual trader to decide when to make the investment based on factors such as volume, liquidity, and time remaining until expiration. However, you must do this before the contract expires on the last Friday of the month. Therefore, you must, at the latest, renew your contract on the last Thursday of the month preceding the expiry date.

For instance:

Suppose you bought Nano Bitcoin futures on August 5th. The August contracts are about to expire, but you want to keep the position you currently hold. All you have to do is sell the August 5 contracts and buy the September 5 contracts. This closes the August contracts position. and establishes a new equal position using the September contracts.

Start trading Nano Bitcoin with NinjaTrader

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

NinjaTrader supports over 500,000 traders worldwide with a powerful, easy-to-use trading platform, discounted futures brokerage, and world-class support. NinjaTrader is always free to use for advanced charting and strategic backtesting via an immersive trading simulator.

Leave a Comment