If you’ve spent some time looking into spread betting, you’ll more than likely have come across the term ‘rolling dailies’. The aim of this article is to demystify the meaning of rolling dailies to help you better inform your spread betting strategy and style going forward.
What’s the difference?
Rolling daily spread bets offer the appeal of flexibility, with contracts running on for as long as the trader chooses. Also, whilst the trades technically do expire, we’re talking about a matter of years rather than days or months.
Not only do rolling daily spreads offer a good amount of flexibility, but they can also provide traders with lower margins and tighter spreads. Something worth noting: because rolling daily spread bets are held open overnight, your trades are subject to a small amount of interest each night. Similarly, if you opt to bet that share prices will fall, you’ll actually receive interest, because you’ve technically lent the spread betting company your money.
It’s worth bearing in mind that these rates are minimal, so don’t panic. Besides, these overnight financing rates are worked out for you, so you’re free to focus on the important things in spread betting.
Please be aware that, for some products where the underlying instrument is based on a futures contract (Metals, Commodities, Energy etc.), rolling spread bets expire in accordance with the futures contract. This could either be on a monthly or quarterly basis.
