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Futures rollover refers to the process where traders close out positions in the expiring contract and open new ones in the next available contract. This is crucial for traders in U.S. equity index futures, such as the S&P 500 (ES), Nasdaq 100 (NQ), Dow Jones (YM), and Russell 2000 (RTY), as these contracts have set expiration cycles.
U.S. equity index futures follow the quarterly expiration cycle on the third Friday of March, June, September, and December.
Expiration Date (Final Trading Day):
Rollover Date (Liquidity Shift):
An alternative approach is to watch volume and liquidity, as the real shift happens when traders actively transition.
This article was written by Eamonn Sheridan at www.forexlive.com.
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