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Tag: roll yield

Chameleon symbolizing roll yield morphing from near-term futures contract to longer-term one in a backwardation market, with profit increase shown as the chameleon's size

Roll Yield: Understanding Profits from Adjusting Futures Positions

June 25, 2025 FinanceFacts101 Finance Policy

Introduction to Roll Yield Roll yield is an intriguing concept in the futures market, representing the profit that investors earn from adjusting their positions as a futures contract nears expiration and rolling it into a new contract with a longer maturity. The term ‘roll yield’ refers to the difference between

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