# Rollover > Rollover means moving a position into a later contract, or carrying a forex trade overnight. Learn how futures rolls and forex swaps work and what they cost. Source: https://learn.tradelabsai.com/markets/rollover/ Track: Markets and Instruments · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Rollover", https://learn.tradelabsai.com/markets/rollover/ Rollover has two common meanings in trading. In **futures**, it means closing a position in a contract that is about to expire and opening the same position in a later month, so you stay exposed without dealing with expiry. In **forex**, it means carrying a position past the daily cut off, which triggers a small interest payment or charge called a swap. Both affect your costs and results, especially for positions held more than a few days. ## Futures rollover Futures contracts expire on set dates. A trader who wants to keep a position for longer must roll it. **Example: Rolling an index future** You are long one E-mini S&P 500 June contract, trading at 5,250. In early June, before expiry, you sell the June contract and buy the September contract at 5,290. You still hold one contract of exposure, now in September. The 40 point difference between the two months is not a loss or gain by itself; it reflects interest rates and expected dividends priced into the later contract. ### When to roll Most traders roll when trading volume shifts from the expiring contract to the next one, typically about a week before expiry for stock index futures. For physically settled commodities, the roll happens earlier, before the first notice day, to avoid delivery obligations. Exchanges and data vendors publish roll calendars. See [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/) and [First Notice Day and Last Trading Day](https://learn.tradelabsai.com/futures/first-notice-day/). ### Rolling all at once or with a spread You can roll with two separate orders, or as a single **calendar spread** order that buys one month and sells the other at a set price difference. The spread order removes the risk of the market moving between your two orders and often has a tighter bid ask spread. See [Calendar Spreads in Futures](https://learn.tradelabsai.com/futures/calendar-spreads-in-futures/). ### What the roll costs or earns When later contracts trade above nearer ones, a market in [Contango](https://learn.tradelabsai.com/futures/contango/), a long position rolled forward repeatedly pays the difference over time. When later contracts trade below, in [Backwardation](https://learn.tradelabsai.com/futures/backwardation/), rolling a long position can add return. This effect, called [Roll Yield](https://learn.tradelabsai.com/futures/roll-yield/), is why commodity ETFs holding futures can perform very differently from the spot price over months and years. See also [Roll Costs](https://learn.tradelabsai.com/orders/roll-costs/). ## Forex rollover and swaps Spot forex trades settle two business days after the trade. Retail brokers do not deliver currencies, so at the daily cut off, usually 5:00 p.m. New York time, they roll open positions forward. Because you are effectively holding one currency and borrowing another, you earn interest on one and pay interest on the other. **Example: A forex swap** You are long AUD/USD. If Australian interest rates are higher than US rates, you hold the higher yielding currency and may earn a small daily credit. If you are short AUD/USD, you would usually pay. The broker sets the exact amount, which includes its own markup, and shows it as a swap rate per lot. Positions held over a Wednesday night usually incur **triple swap**, covering the weekend, because of how spot settlement dates fall. See [Rollover and Swap in Forex](https://learn.tradelabsai.com/forex/rollover-and-swap-in-forex/) and [Carry Trades in Forex](https://learn.tradelabsai.com/forex/carry-trades-in-forex/). ## Rollover in other products - **CFDs** charge or credit daily financing on positions held overnight, similar to forex swaps. See [Financing and Overnight Costs](https://learn.tradelabsai.com/orders/financing-and-overnight-costs/). - **Crypto perpetual futures** have no expiry, so there is no roll. Instead, traders pay or receive **funding** every few hours, which does a similar job of linking the price to spot. See [Funding Rates](https://learn.tradelabsai.com/crypto/funding-rates/). - **ETFs and funds** that hold futures roll on their own schedule, which affects their returns. ## Common mistakes - **Forgetting expiry** and being closed out or facing delivery. - **Ignoring roll costs** in long term futures or commodity ETF positions. - **Holding forex positions with negative swap for months** without counting the cost. - **Rolling with two market orders in a thin market**, paying spread twice. ## Frequently asked questions ### What is rollover in futures trading? It is closing a position in an expiring futures contract and opening the same position in a later contract month to maintain exposure. ### Why was I charged a swap on my forex trade? Because you held the position past the daily rollover time. The swap reflects the interest rate difference between the two currencies plus your broker's markup. ### Is rolling futures a cost? The price difference between months is not a fee, but repeatedly rolling in a contango market reduces returns for long positions, and each roll adds trading costs. ## Sources - Wikipedia, [Rollover (finance)](https://en.wikipedia.org/wiki/Rollover_%28finance%29) ## Continue learning - Next lesson: [Bid-Ask Spread](https://learn.tradelabsai.com/markets/bid-ask-spread/) - Previous lesson: [Expiration](https://learn.tradelabsai.com/markets/expiration/) - Related: [Expiration](https://learn.tradelabsai.com/markets/expiration/): Expiration is the date a derivative contract ends. Learn what happens to futures, options and prediction markets at expiry, and how traders manage it. - Related: [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/): Rolling moves a futures position from an expiring contract to a later one. Learn when to roll, how to use calendar spreads, roll costs and common roll schedules. - Related: [Rollover and Swap in Forex](https://learn.tradelabsai.com/forex/rollover-and-swap-in-forex/): Holding a forex position overnight earns or pays interest called rollover or swap. Learn how it is calculated, triple Wednesday, swap free accounts and carry. - Related: [Roll Costs](https://learn.tradelabsai.com/orders/roll-costs/): Rolling futures from one month to the next can cost or earn money. Learn how roll costs arise in contango and backwardation and how they affect futures ETFs. - Related: [Contango](https://learn.tradelabsai.com/futures/contango/): Contango is when later futures trade above nearer ones or spot. Learn why it happens, how it erodes long commodity and VIX funds, and how traders use it. - Related: [Financing and Overnight Costs](https://learn.tradelabsai.com/orders/financing-and-overnight-costs/): Holding leveraged positions overnight costs money. Learn margin interest, forex swaps, CFD financing, carry costs and how to include them in your trade plan.