Rolling a contract is an investment concept meaning trading out of a contract and then buying the contract with next longest maturity, so as to maintain a position with constant maturity. == Motivation == One may roll a contract because one has a special preference for a specific maturity—for example, the five-year CDS rate of a given name—or because a given on-the-run security is more liquid than off-the-run securities.
Rolling a contract is an investment concept meaning trading out of a contract and then buying the contract with next longest maturity, so as to maintain a position with constant maturity. == Motivation == One may roll a contract because one has a special preference for a specific maturity—for example, the five-year CDS rate of a given name—or because a given on-the-run security is more liquid than off-the-run securities.
Source: Wikipedia "Rolling (finance)" · CC BY-SA 4.0
Share this article: X · Bluesky