| What does Rollover mean at TradeJini?Rollover, or rolling over a contract, at TradeJini refers to the practice of extending a futures position by transitioning from the current-month contract, which is nearing expiration, to a contract with a later expiry in another month. To execute a rollover, one closes the position in the expiring contract and initiates a new position in a similar contract with a future expiration. It’s important to note that rollover is applicable only to futures and not to options. |
| Example Scenario at TradeJiniLet’s say you’ve purchased a Nifty futures contract with an expiry date of 23rd February. If you anticipate that the Nifty will continue to rise in March and wish to maintain your position, you can perform a rollover. This involves exiting the existing Nifty February futures contract and entering into a new position for the March futures contract, which expires in March. |
| Important NoteHowever, it’s essential to be aware that according to SEBI (ZIP), the rollover of contracts during the ban period is prohibited. Nevertheless, you are permitted to exit existing positions.
Also Read: How to Rollover a Futures Contract: Understanding the Process, Risks, and Impact |
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