Futures contracts have a limited lifespan, concluding when they reach their expiration date. Each trading market sets its own expiration schedule, which can span across different times of the year, sometimes extending into the subsequent year. As the expiration date approaches, traders engaged in futures must decide to either:
a. Close their current position, or
b. Transfer (“roll”) their position to a subsequent contract for the same asset, thereby prolonging the period until expiration.
For more, see:
Expiration Dates for Futures Contracts
Every futures contract is denoted by a specific product symbol, accompanied by its expiration month and year. (See: Futures Contract Month Codes)
The frequency of expiration varies among contracts; some conclude monthly, whereas others may do so quarterly. The “front month” contract—which is the one closest to its expiration date—is typically the most actively traded.
For instance, the Micro E-mini S&P 500 expiring in September 2024 would be indicated as MESU4 (or MES 09-24). Upon the expiration of the MES 09-24 contract, traders intending to maintain their positions would transition to the subsequent contract, such as MESZ4 (MES 12-24).
- Tip: The expiration dates for E-mini & Micro E-mini equity index contracts are scheduled for the third Friday of every third month (March, June, September, and December).
Rolling Over Futures Contracts
Expiration may not be the only reason to rollover. Traders often opt to transition their contracts to stay in step with trading volume and assure sufficient market liquidity.
- Tip: The bulk of trading volume typically moves to the next contract sometimes up to a week (or more) before the front month actually reaches the expiration date.
See how to roll over futures contracts in NinjaTrader in this 1-minute video:
Popular futures instruments, like those for equity indexes and major commodities, often have their contract expiration dates preset in trading platforms like NinjaTrader.
Cash Settled vs Physically Delivered
Futures contracts conclude either through cash settlement or physical delivery. With cash-settled contracts for which there is no physical asset involved (e.g., E-mini index futures), expiration results in a straightforward financial adjustment to the trader’s account.
On the other hand, contracts that stipulate physical delivery (e.g., those for commodities such as gold, oil, or soybeans, etc.) necessitate that traders either take delivery of or provide the specified commodity at expiration (depending on which side of the contract they were on).
Although taking physical delivery is a possibility, it is a route typically bypassed by traders, who prefer to close out or roll over their positions to avoid such an outcome.
Black Belt Trading's Futures Contract Rollover Dates List
Bookmark Black Belt Trading’s Futures Contract Rollover Dates page to reference exact dates on the most popular futures contract rollovers.
Explore the rest of the site to discover the key to successful trading with tools like the rollover date calendar.
Risk Disclosure:
Futures and Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points, which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect trading results.
Any testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
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Additional Disclosure:
The content provided is for informational purposes only. We do our best to keep the content current and accurate by updating it frequently. Sometimes the actual data, rules, requirements and other can differ from what’s stated on our website. Blackbelttrades.com is an independent website. You should always consult the rules, FAQs, knowledge base and support of any of the websites and companies we link to or talk about on our site. The information on their site will always be what ultimately dictates the current rules of their program, software or other. While we are independent, we may be compensated for advertisements, sponsored products, or when you click on a link on our website. The contributors and authors are not registered or certified financial advisors. You should consult a financial professional before making any financial decisions.
