When would it be a good time to shift to the next month contract

General
1

Hi,

Lets say I am trading the crudeoil March contract and its expiring on the 20th of March. How do we decide how many days before we want to start trading the April months contract instead of the March months contract.

Assuming that our trading doesn’t depend on any expiry day strategy.

Thanks.

2

There is no set rules for this. However, I usually rollover 2 days before the expiry. Remember, closer to expiry the liquidity starts to dry up, offloading large quantities can be an issue at the last minute.

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3

Thanks @Karthik