What is a 30 days 'rolling' period exactly ?

[RunningWild]

Hi everyone,

I'd like to know what a 30 days rolling period means. Could you describe it for me with an example ? Thanks in advance.

 

[Barb_D]

It refers to a period of time that "rolls" with whatever the current date is.
A three-month rolling average refers to the three month immediately prior. Not "the first quarter" (Jan, Feb, March) but whatever three months came before. It's almost June, so March, April, and May would be the three months referred to in June.

For a 30-day rolling average, it's the average of the past 30 days, whether it's the 1-30 or 15 March to 14 April.

 

[RunningWild]

So what would a 30 days rolling period from the 4th of February this year until now look like ? Say something changes in 30 day rolling periods,which one is the last day of the current period ?

 

[bhaisahab]

I had never come across it before.

 

[MikeNewYork]

A 30 day rolling period from February 4th extends to March 5. These are usually set up so that the days continue to roll until a trigger occurs. Let's say that a person negotiates a mortgage rate of 4.5% with a 30 day rolling period from the day interest rates go up. The rise in interest rate is the trigger. Until there is a rise in interest rates, that rate of 4.5% will continue indefinitely. If the interest rate increases on June 1, the 30 day rolling period expires on June 30.

If a football coach signs a contract with a 3 year rolling period, he will continue having a three-year contract until the day he is fired. Then he has three more years on his contract.

 

[RunningWild]

This is not like that. its something that is calculated in 30 days rolling periods. My question is how these periods look like ? Say if the first day of the period is the 4th of February 2014 then which one is the last and the first one of the next period and so on until now. So the first day of the rolling period is 4th of February 2014 then is the last the 5th of March, and does the next 30 days start from the 6th of March. So is it like you always need to add 30 days to the first day ?

Like February the 4th+30days = 5th of March 6th of March+30days = 4th of April , 5th of April + 30 days = 4th of May , 5th of May+30days = 3rd of July

Does the 30 days rolling period mean this or am I wrong ?

 

[MikeNewYork]

I would not call those "rolling". Those are consecutive 30 day periods. The term "rolling" means that the periods change daily depending on circumstances.

 

[RunningWild]

I get it now, thanks for the explanation

 

[Barb_D]

I'm most familiar with a "rolling average."

A three-month rolling average is based on the prior three months of whatever month you're in. It's just, so the current "three-month rolling average" would be based on March, April, and May. When it's July, the three-month rolling average will be based on April, May, and June.

Credit cards can make it hard for you to have no interest if they calculate their interest based on your average daily balance of a rolling perdiod.

Let's say your period closes on the 5th and you get your statement on the 10th. It's due on the 20th. You pay it on the 19th. You pay it in full. However, you did have a balance from the 6th, the start of the new rolling period, until the 19ths. That way, even when there are no new charges, they can say you owe interest on your average daily balance during the 6th through the new month - and send you a bill for the interest during that perdiod. The average daily balance "rolls" - it wasn't "What did you owe on the 5th? Okay - You paid that that and now you're at zero."