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Help Center Algo Trading Card Description Operation Card - Roll Position

Operation Card - Roll Position

What is Roll Position?

Rolling position transfers the current futures contract to one that expires later. When a strategy is running, if you are holding a futures contract that is about to expire but you want to maintain the positions in the same direction for a longer period, you can use the Roll Position card.

Any images provided are not current and any securities or inputs shown are for illustrative purposes only and are not recommendations.

Parameter Description:

  • Initial Contract: Applicable to futures contracts in the Hong Kong, United States, Singapore, and Japan markets. Options are not currently supported.

  • Roll Quantity:

    • Quantity: The card will use the number of contracts you currently have when it's time to roll.

    • Number of Contracts: You can specify how many contracts to roll, as long as it's not more than what you have.

  • New Contract: A contract with the same underlying as the initial contract and a further expiration date. You can't roll to a contract that expires sooner.

 

Card Flowchart

If you have both long and short positions, here's what the Roll Position card does:

  1. Cancel orders for the initial contract

  2. Cancel orders for a new contract

  3. Close the initial contract

  4. Open a new contract

The card must successfully complete each step before moving on to the next. If any step fails, the subsequent steps are not performed.

When rolling positions, you can hold new contract positions that are opposite to the initial contract's direction, but the quantity must not be less than that of the initial contract.

Example 1: You have 1 long position in the US.CL2408 contract and 1 short position in the US.CL2409 contract.

  • If you roll your futures positions, it will sell to close the long position in US.CL2408 and then buy to close the short position in US.CL2409.

Example 2: You have 2 long positions in the US.CL2408 contract and 1 short position in the US.CL2409 contract.

  • If you roll your futures positions, it will sell to close the long positions in US.CL2408, and then fail when attempting to submit a buy order to close two short positions in US.CL2409.

 

How to use the Roll Position card

Before a futures contract expires, the main contract will shift from the expiring month contract to a contract that expires later, with a more distant expiration month. At this time, the current month contract and the main contract are often different, and this can be used to determine when to roll position.

For example, with Hang Seng Index futures, if the main contract shifts to a future month, you can use the Roll Position card to roll your current month's positions to the new main contract.

Any images provided are not current and any securities or inputs shown are for illustrative purposes only and are not recommendations.

Futures live trading is currently only available for trading accounts with Moomoo SG or FUTU HK and is not yet supported by accounts with Moomoo US or Moomoo AU. Futures trading involves high risks and is not suitable for all investors. The amount you could lose may be greater than your initial investment.

Losses can happen more quickly with quant and algorithmic trading compared to other forms of trading. Trading in financial markets carries inherent risks, making effective risk management a crucial aspect of quantitative trading systems. These risks encompass various factors that can disrupt the performance of such systems, including market volatility leading to losses.

Moreover, quants face additional risks such as capital allocation, technology, and broker-related uncertainties. It's important to note that automated investment strategies do not guarantee profits or protect against losses.

The responsiveness of the trading system or app may vary due to market conditions, system performance, and other factors. Account access, real-time data, and trade execution may be affected by factors such as market volatility.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors.  It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.