What is the meaning of roll over in the context of cryptocurrency finance?

1 answers

• Nov 28, 2021 · 3 years ago
  Roll over is a term commonly used in the cryptocurrency finance industry to describe the action of extending the expiration date of a futures contract or a loan. It allows investors to maintain their positions or loans without the need to close and reopen them. For example, if you have a Bitcoin futures contract that is about to expire, you can choose to roll it over to extend its duration. This gives you the flexibility to continue your exposure to Bitcoin without the hassle of closing and opening new positions. Similarly, if you have borrowed cryptocurrency and need more time to repay the loan, you can roll over the loan to extend the repayment period. However, it's important to note that rolling over may come with additional costs or risks, such as changes in interest rates or market conditions. Therefore, it's crucial for investors to carefully evaluate the implications and consult with financial professionals before deciding to roll over their positions or loans.
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