Trading CFDs (Contract for Differences) is a great way to take advantage of price fluctuations in the financial markets. It’s important to note that the CFDs listed here do not have an expiration date but use as a reference the calendar below.
rollover: How it works
Up to 3 days prior to the official expiration date (Maturity), Accounts with Open Positions of the Expiring underlying Futures instrument will be adjusted to ensure Clients do not Gain/Loss due to the difference in price between Old and New Contracts. Clients will incur costs in relation to the Spread Cost in closing the Old Contract and opening a New Contract.Â
If you are holding a position in any Continuous CFD contract, and you do not wish to be debited or credited when the rollover occurs, are advised to manually close your positions before the CFD expiration date.
| Symbol | Rollover |
|---|---|
| Symbol:CRUDE.OIL | Rollover:12-11-24 |
| Symbol:NATURALGAS | Rollover:21-11-24 |
To calculate the CFD Rollover Charge, CMTrading takes the Difference in Prices between the two contracts (Old and New) from the Exchange at the end of the trading day before expiration then add our Spread. The resulting amount is either Credit or Debit to the Client Account via Trade Transaction; CFD ROLLOVER
Formula:
[Number of Lots x Contract size x (New Contract Price – Old Contract Price) – Spread Cost]
*Spread Costs are calculated based on Market Spreads at the time of the Rollover Calculation.
General Rule:
New Price < Old Price >> Credit for Long Positions / Debit for Short Positions
New Price > Old Price >> Debit for Long Positions / Credit for Short Positions
Example
Crude Oil Trade: 100 Barrels (0.1 Lot)
Lot Size: 1,000 Barrels
Old Contract Price: $70.00
New Contract Price: $70.40
Price Difference = $0.40 (40 pips)
Typical Spread: 3 pips (0.03)
For such Trade:
Long Position: (0.1 x 1000 x -0.40) – (0.03 x 100) = -$43.00
Short Position: (0.1 x 1000 x 0.40) – (0.03 x 100) = $37.00
Debit/Credit will appear in your account according to the example below:
| Time | Type | Symbol | Lots | Price | Time | Price2 | Profit | Comment |
|---|---|---|---|---|---|---|---|---|
| 2021.07.29 13:33:59 | buy | cfdrollover | 1.00 | 1.00 | 2021.07.29 13:33:59 | 1.00 | -43.00 | Expiration Charge |
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