What is the meaning of Roll Down?

Roll Down is the movement out of a higher coupon or option strike price into a lower coupon or option strike price. It can also describe the movement down a yield curve from a relatively longer maturity security into a relatively shorter maturity security.

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APABarry Goldsmith. (2010). roll down. Retrieved September 20, 2026, from http://smartdefine.org/roll_down/definitions/1162702
ChicagoBarry Goldsmith. 2010. "roll down" http://smartdefine.org/roll_down/definitions/1162702 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, roll down, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/roll_down/definitions/1162702>.
MLABarry Goldsmith. "roll down" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/roll_down/definitions/1162702>
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