Futures rollover is the process by which traders exit positions in a soon-to-expire contract and re-establish them in the next active contract month. This is particularly important in U.S. equity index futures:
- including the S&P 500 (ES),
- Nasdaq 100 (NQ),
- Dow Jones (YM)
- and Russell 2000 (RTY)
which trade on fixed expiration schedules.
These contracts expire on a quarterly cycle, with final trading taking place on the third Friday of March, June, September and December.
In practice, rollover activity typically begins earlier, with many traders shifting positions from the Monday of expiration week as liquidity migrates to the next contract. Some participants instead monitor volume and open interest to identify the point at which trading activity decisively moves into the new contract.
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