When a futures trader holds a position nearing expiration, the choices are:

• Close out or (in the case of /ES) let it expire to cash
• Carry it forward (i.e. enter a similar contract expiring at a future date)

This last choice is called rolling.

Today, Pete and Katie walk through what futures tradiers need to think about when rolling and maintaining a futures trade. Find out how "cost of carry" and liquidity play an important role.