Roll forward is to extend the expiration or maturity of an option or futures contract by closing the initial shorter-term contract and opening a new longer-term contract for the same underlying asset. A roll forward enables the trader to maintain the investment position beyond the initial expiration of the contract (since options and futures contracts have finite expiration dates) and is usually carried out shortly before expiration of the initial contract. Both legs of the roll forward are typically executed simultaneously, in order to reduce slippage (i.e. profit erosion) due to a change in the price of the underlying asset.
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