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Glossary · PSX term

Rollover week.

Rollover week is the period when expiring futures positions are closed or moved to the next contract.

Definition

Near monthly futures expiry, traders roll positions forward, which can increase volatility and volume in both the futures and cash markets. The rollover or badla rate reflects the cost of carrying leveraged positions.

Worked example

During rollover week, a trader sells the expiring OGDC future and buys the next month's contract to keep exposure.

Related on PSX Clarity

Term
Futures contract
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Deliverable futures
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