Rolling a position
Moving a position from the expiring series into the next one: closing one contract and opening another.
How to read the number
This is how exposure is kept beyond the life of a single contract, otherwise a strategy measured in months would be cut off at every expiry.
When the metric lies
Each roll costs the spread and commission, and in contango the next series is bought dearer than the one closed. A long commodity position bleeds on rolling even while spot stands still.
Also known as: rolling a contract