Your position
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Hold-period comparison
How much position profit is needed to cover the roll cost?
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What is a futures roll?
Quarterly futures contracts expire every three months. If you want to maintain your position past expiry, you must roll: close the expiring contract and open the same-sized position in the next quarter. Rolling has two costs:
- Basis cost — the price difference between the two contracts. In contango (next quarter higher), longs pay extra. In backwardation (next quarter lower), longs receive a credit.
- Double fees — you pay taker or maker fees twice: once to close, once to open.
Roll vs perpetual: which is cheaper?
Perpetual swaps charge funding every 8 hours (typically 0.01% per interval ≈ 10.95%/yr when market is bullish). If the annualized basis on quarterly futures is below that funding rate, quarterly contracts are cheaper. During bear markets funding often goes negative (shorts pay longs), making perpetuals attractive for longs.
Compare tools: Perpetual vs spot · Funding rate APR · Basis calculator · Cash & carry arb
Frequently asked questions
What is the roll cost of a futures contract?
Roll cost is the total expense of closing your current futures contract and opening the equivalent position in the next expiry. It has two components: the basis (price difference between the two contracts) and two sets of trading fees (one to close, one to open). If the next quarter trades at a premium, the roll costs extra on top of fees.
What is basis in crypto futures?
Basis = next contract price − current contract price. Positive basis (contango) means the next quarter is more expensive — you pay extra to roll. Negative basis (backwardation) means you receive a credit. Basis is driven by funding expectations, supply/demand, and time to expiry.
How is annualized roll yield calculated?
Annualized roll yield = (basis / current price) × (365 / days to roll). This shows the yearly cost or income from repeatedly rolling the position. A 1% basis with 90 days to expiry annualizes to about 4% per year.
When is it cheaper to hold perpetuals vs quarterly futures?
Perpetuals charge funding every 8 hours (often 0.01% per interval = ~10.95%/yr when positive). Quarterly futures avoid funding but have roll costs. If annualized basis exceeds the expected funding cost, perpetuals are cheaper. If basis is lower, quarterly futures win.
What is contango and why does it hurt futures holders?
Contango is when the futures price is higher than the spot price. If you are long a quarterly contract in contango, each roll you buy the next quarter at a premium, effectively paying extra above spot. Over many rolls this premium compounds into a significant drag on returns.