Rollover
- Thread starter V FROM TCR
- Start date
I have always been wondering as to what happens in a RollOver.
Is it just selling the existing month's Contract & buy new months. Obviously cost would be Brokerage for Buying & Selling and price difference.
OR is it paying/recieving price difference without paying any Brokerages.
FnO Traders, please explain.
Cheers
PAKatil
Is it just selling the existing month's Contract & buy new months. Obviously cost would be Brokerage for Buying & Selling and price difference.
OR is it paying/recieving price difference without paying any Brokerages.
FnO Traders, please explain.
Cheers
PAKatil
You have the buy the next months future to rollover, there is nothing like a automatic rollover. As far as the current months future is concerns you can allow it to expire. also you need to be aware of the margin requirements while doing a rollover. If you sell current months future first and then buy the next months future, you dont need extra margin. but doing the other way would require extra margin. allowing the current months future to expire would also require extra margin.
Sachin
Sachin
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