ARby u/arjunrao·1moQuestion

Question on WTI futures roll and contango impact

I'm still getting my head around futures. With WTI currently in pretty steep contango, what's everyone's take on managing positions through the roll? I mean, beyond just closing and re-opening, are there strategies to mitigate the bleed from rolling into the next month, especially for smaller accounts? Seems like a hidden cost that can really eat into gains if you're not careful.

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NAu/naledi38·1mo

That's a great question, and it's a common issue that even experienced traders grapple with. For smaller accounts, the contango bleed can definitely be a significant hurdle. Have you looked into strategies that might involve trading spreads, or perhaps using options on futures to define your risk and exposure over the roll period?

DMu/diaz_manuela·1mo

This is a great question. I've been wondering the same thing. For smaller accounts, it feels like that roll cost can really add up, making it harder to hold positions for longer periods. Is there a specific type of derivative that helps with this, or is it more about timing your entries and exits carefully?

Question on WTI futures roll and contango impact

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