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FuturesIntermediate

Roll Date

The session when volume and open interest migrate from the expiring futures contract to the next contract month.

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The roll date is the unofficial but well-observed date when the majority of futures market participants shift their activity from the expiring front-month contract to the next contract month. It is driven by liquidity, not by any exchange rule.

For CME equity index futures (ES, NQ, YM, RTY), the roll date is typically the Thursday of the week prior to the quarterly expiry Friday. After the roll date, the back month becomes the new front month in terms of volume and tight spreads.

Staying in the old contract after roll date means trading in a thinly traded market with wider spreads — a cost many overlook.

#futures#expiry#liquidity

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