Passive Roll

[emretezel]

Hi Everyone,

Could someone please give me a an example of how passive roll works. In the production documentation it says it tactically reduces positions in the pricing contract and opens new positions in the forward contract.

For example, I am short one contract of GAS_US, 5 days to roll expiry, 40 days to price expiry, my system needs to open a new short contract, it is also the roll time. What would happen if I change the roll status to passive?

Best,
Emre

[oldlore]

If you change the status to passive and the system decides that it wants to go -2 GAS_US then it will sell the forward contract. Doesn't touch the priced contract. Roll doesn't factor in since to roll you'd have to change the roll status to something other than passive (e.g. FORCE).

[robcarver17]

And for completeness, if it wanted to reduce it's position eg go to 0 GAS_US then it would do that by closing the priced contract.