There are 2 ways a customer can roll over his/her contract:
- Manual: Here the customer has to place 2 orders individually. First, he/she has to access the position book to square off the current position and place a new order on a new derivative to roll over his position. Since there is always a time difference between placing 2 different orders there is a risk of change in prices.
- Spread: This is the special type of order provided by the exchanges which combine 2 orders into one to seamlessly roll over one’s positions without worrying about the fluctuation in prices of the 2 contracts.