How to play the currency contract rollover?

Currency contract rolling means closing the current contract and then opening a new contract in the same direction to continue the original position. The operation steps include: determining the direction of position rolling, closing the current contract, and opening a new contract. Things to note include: transaction costs, market risks, leveraged positions, and position holding time. Techniques include: following the trend, controlling positions, stopping losses in time, using take-profit orders, and choosing contracts with good liquidity.

Tips of currency contract rollover

What is currency contract rollover?

Currency contract rolling refers to the act of continuing the original position by closing the current position contract and opening a new contract in the same direction at the same time.

How to operate the currency circle contract rollover?

Step 1: Determine the roll direction

Based on the market conditions, judge the future trend of the currency price and determine whether to continue to hold the original contract direction or reverse the direction operate.

Step 2: Close the current contract

Click the "Close" button on the trading platform to close the currently held contract.

Step 3: Open a new contract

According to the determined roll direction, select a new contract of the same contract type and multiple, and click the "Open Position" button.

Notes on currency circle contract rollover

• Transaction costs: Both closing and opening positions will incur handling fees, which need to be considered cost.
• Market risk: Fluctuations in currency prices may lead to rolling losses, so you need to be careful in judging the timing.
• Leverage addition: Rolling the position will enlarge the leverage and increase the risk.
• Position holding time: The contract has an expiration time and needs to be renewed or closed in time.

Tips for rolling positions in currency circles

• Follow the trend: Roll positions with the trend, that is, to chase the rise in the bull market. Bears are bearish.
• Control positions: Reasonably control positions based on risk tolerance to avoid excessive positions.
• Stop loss in time: Set a stop loss position, and close the position in time to stop the loss once the market trend is unfavorable.
• Use of take-profit orders: Set a take-profit order to close the position when the profit reaches the expected target.
• Choose a contract with good liquidity: Contracts with large trading volume have good liquidity and are easier to complete when rolling positions.

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