Rolling Forward

Extending Market Duration

Rolling Forward strategy allows users to extend the expiration of their current position to a later date, giving their predictions more time to play out and enhancing the potential for profit.

Example:

Imagine you’re involved in a prediction market where Bitcoin is expected to reach $100,000 in 2024, with specific timeframes in September, October, November, and December. You initially buy shares predicting that Bitcoin will hit $100,000 in November. As the expiration date nears, Bitcoin’s price is only at $90,000. You still believe the price will reach $100,000 by December.

Using the Rolling Forward, you can shift your position from the November market to the December market. This involves selling your shares in the November market and using the proceeds to purchase shares in the December market. This extension provides additional time for your prediction to come true, increasing the chances of earning a profit if Bitcoin does reach $100,000 by December.

Benefits:

• Maximized Profit Opportunities: Extending the timeframe allows you to capitalize on market trends that continue beyond the initial expiration.

• Strategic Flexibility: Adjust your investment strategy based on real-time market developments.

• Effective Risk Management: Instead of accepting a loss due to timing, you can shift to a more favorable timeframe, reducing the risk of losing your capital.