The Truth About Rolling Positions in the Crypto World: A Lifesaving Skill or Accelerating to Zero
🔎 What is rolling positions?
In one sentence: Close old positions → Open new positions → Struggle to survive.
It is a life-saving skill commonly used by contract players, especially those with high leverage.
💥 Three Common Scenarios for Rolling Positions
1️⃣ Futures traders who do not want to deliver
Futures come in two types: perpetual contracts (no expiration) and quarterly contracts (expire in 3 months).
If you are holding a BTC quarterly contract expiring in June, you should close it first, then buy the one for September, and continue to “hold the position.”
👉 Perpetual contracts don't require rolling, but you have to pay funding rates, with both long and short positions cutting each other!
2️⃣ Life-saving operations when about to be liquidated
For example, if you are using 10x leverage to go long on BTC, and the price drops significantly, you are about to be forcibly liquidated.
🔥 Self-rescue method: Cut half of your position, and use the remaining margin to open a lower leverage position → Extend survival time.
(This is commonly referred to as the “tactical delay,” but many people end up losing more and more…)
3️⃣ Regular strategies for arbitrage traders
When there are price differences between different exchanges and contracts, short the expensive one first, then long the cheaper one, and roll positions before expiration to lock in profits.
⚠️ Hidden pitfalls of rolling positions
Funding rate harvesting: If the funding rates for perpetual contracts are too high, rolling positions can result in losing money.
Extreme market spikes: A big price spike can occur just after changing positions, causing both old and new positions to explode.
High on-chain operation costs: On-chain contracts like ETH options have ridiculously high gas fees, and a single operation can empty your wallet.
🌰 Practical Case
With a principal of 10,000 U, using 100x leverage to go long on ETH.
After ETH drops by 10%, your margin is only 1,000 U, and you are about to be forcibly liquidated!
🔥 Rolling operation:
1️⃣ Close 90% of your position (leave 100 U)
2️⃣ Open another 10x long position
Result: Position reduced, leverage lowered, allowing a bit more time to wait for a rebound to break even.
👉 But if the price continues to drop, the 100 U will be gone too.
🚨 Pitfall Prevention Guide
✅ Before changing positions on quarterly contracts, compare the new and old prices to avoid unnecessary losses.
✅ It’s best to operate on perpetual contracts before funding rate settlements to avoid high-rate periods.
✅ Always leave enough gas for on-chain operations, or getting stuck halfway can be worse.
💬 Summary
Rolling positions is like dancing on the edge of a knife:
👉 Success means a lifeline counterattack, failure accelerates to zero.
Beginners should stay away from high leverage, and even seasoned players must set stop-losses!
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