Skip to content
GetProfitable
Search
Dictionary

Goldman roll

The five-day window each month when major long-only commodity indices roll their positions from the front month to the next, on a published, predictable schedule.

Large commodity index products track rules-based benchmarks that must stay in liquid contracts. Their rules move one-fifth of the position each day on business days five through nine of the month, selling the expiring contract and buying the next. Because the schedule is public, everyone knows the flow is coming.

Front-running the roll used to be a reliable trade: sell the front and buy the deferred ahead of the index, then hand the position back to them. Publication of the schedule and competition among traders has largely eroded the edge, but the flow still distorts intramarket-spread pricing in that window.

Example: an index holding 100,000 crude contracts rolls 20,000 per day for five days. Against average front-month daily volume of roughly a million contracts, that is a visible but not overwhelming push on the front-to-second spread.

Related: roll, roll-date, intramarket-spread, roll-yield, volume-vs-open-interest

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Bid-ask spread in an order bookSell orders stacked above buy orders with a gap between the best of each.SELLERS (asks)50.0690050.051,40050.0460050.011,10050.002,30049.99800spread = 0.03BUYERS (bids)
The bid-ask spread. Buy orders sit below, sell orders above, and the gap between the best bid (50.01) and best ask (50.04) is the spread you pay to cross. Bar length shows the size resting at each price.

Educational only, not advice. Spotted an error? Post in Site Feedback.