The practice of continuously extending or replacing expiring hedging contracts, such as forwards, options, or swaps, with new ones to maintain ongoing protection against currency or market risk. This strategy ensures uninterrupted coverage for exposures that extend beyond the maturity of a single hedge. 

Rolling hedges are commonly used when managing long-term or recurring exposures, such as future receivables, payables, or ongoing international operations, where a single hedge would be insufficient due to time limitations. The process involves closing out the maturing hedge and simultaneously initiating a new hedge for a future period. 

For example, a company expecting monthly USD payments over the next year might initially hedge the first three months with forward contracts. As each contract expires, the company enters a new forward for the next period, thereby rolling the hedge forward to maintain continuous protection. 

While rolling hedges provide flexibility and sustained risk management, they also require active monitoring and may result in cumulative transaction costs or exposure to unfavorable market movements at each roll date. Treasury teams often implement this strategy as part of a broader hedging program, using tools such as hedge schedules, rolling calendars, and layered hedging approaches to align risk coverage with business needs.