Market Basics
Contract roll
A contract roll is moving a futures position from a near-expiry contract to a later one to maintain exposure. The cost or benefit of rolling depends on whether the curve is in contango or backwardation.
Futures contracts expire, so a trader who wants to keep exposure must roll: close the position in the expiring contract and open it in a later-dated one. On MCX and COMEX this happens around each expiry as liquidity migrates to the next active month.
For a bullion trader, the roll has real costs and consequences. In contango, rolling into a pricier later contract carries a cost; in backwardation, it can work in the holder's favor. The roll rule also matters for charting, since stitching contracts into a continuous history requires a defined method.
When comparing contracts or reading basis, the roll context must travel with the analysis. Checking contract codes, expiry dates, and roll pressure prevents misreading a spread that is really an artifact of which contracts are being compared.
Put it to work
Educational reference only. Definitions describe how traders use these concepts and are not investment advice or a recommendation to trade.