Futures mechanics
What is Contract Roll-Over and how do traders smoothly transition open volume to the next active month?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Contract rollover is shifting an open position from the expiring front-month contract into the next active month to maintain continuous exposure.
How it works
Traders typically roll positions as volume and open interest shift to the next contract, often days before expiration or first notice day.
An example
Traders roll from the March ES contract into June ahead of expiration.
Risk & limitations
Rolling incurs spread costs and can create gaps in historical price charts.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.