Limit moves during rollover period

I

illiquid

Say a contract goes locked limit up for a series of days that also coincide with the rollover date into the next contract month -- is it common for people to be locked out of one's position? You would need to sell your current contract (assume it's impossible to take delivery) which is not a problem but then also buy in the next liquid month, which you can't if it's limit up as well. What is the best way to remedy this?
 
Interesting question illiquid ... I would suggest:

(1) Rolling over early to avoid this problem
(2) Hedging with stocks or another related instrument

What particular contract are you talking about? Or is this a hypothetical question?
 
Would have to be completely limit locked for a week plus, since most volume tends to roll to the next period a week or more before expiration - but contracts do still get traded even on days prices trigger limits so even in the unusual condition of price limits for more than a week you'd still have a chance of getting square.
 
Quote from illiquid:

Say a contract goes locked limit up for a series of days that also coincide with the rollover date into the next contract month -- is it common for people to be locked out of one's position? You would need to sell your current contract (assume it's impossible to take delivery) which is not a problem but then also buy in the next liquid month, which you can't if it's limit up as well. What is the best way to remedy this?
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SPREADS TRADE REGARDLESS IF CONTRACTS ARE LIMIT UP!!!!
 
Pabst,

The only spreads I am familiar with are the likes of margarine, jam and Vegemite.

Can you tell me how they relate to futures?

Thanks

Quote from Pabst:

SPREADS TRADE REGARDLESS IF CONTRACTS ARE LIMIT UP!!!!
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