Rolling over contracts in the crypto market means closing the current contract and opening a new contract in the same direction to extend the original position. The operational steps include: determining the rolling direction, closing the current contract, and opening a new contract. Important notes include: transaction costs, market risks, leverage increase, and holding time. Techniques include: following trends, controlling position size, timely stop loss, using take profit orders, and choosing contracts with good liquidity.
What is Rolling Over Contracts in the Crypto Market?
Rolling over contracts in the crypto market refers to closing the current position contract and simultaneously opening a new contract in the same direction to extend the original position.
How to Operate Rolling Over Contracts in the Crypto Market?
Step 1: Determine the rolling direction
Based on market conditions, judge the future price trend to determine whether to continue holding the original contract direction or to operate in the opposite direction.
Step 2: Close the current contract
Click the 'Close Position' button on the trading platform to close the currently held contract.
Step 3: Open a new contract
Based on the determined rolling direction, choose new contracts of the same type and multiple, and click the 'Open Position' button.
Important Notes for Rolling Over Contracts in the Crypto Market
Transaction Costs: Both closing and opening positions incur fees, so transaction costs must be considered.
Market Risk: Price fluctuations may lead to losses when rolling over, so cautious timing is required.
Leverage Increase: Rolling over will amplify leverage and increase risk.
Holding Time: Contracts have expiration dates; timely renewal or closing is required.
Techniques for Rolling Over Contracts in the Crypto Market
Follow the Trend: Roll over with the trend, buying during a bull market and selling during a bear market.
Control Position Size: Reasonably control position size based on risk tolerance to avoid excessive leverage.
Timely Stop Loss: Set a stop loss level; once the market trend is unfavorable, close the position promptly to limit losses.
Use Take Profit Orders: When profits reach the expected target, set a take profit order to close the position.
Choose Contracts with Good Liquidity: Contracts with high trading volume have good liquidity, making it easier to execute when rolling over.
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