When trading CFD futures it is important to remember that each contract has an expiration date. Once the underlying instrument of a CFD expires it is no longer tradeable.
Unlike other companies who close open trades at expiration, WorldWideMarkets offers our clients non-expiring CFD Futures. WWM is able to allow customers to maintain open futures positions past a contract’s expiration date via a Future Roll. The Future Roll process will occur at the contract expiration date once the market has closed for the day. A switch in future contracts occurs from its expired month to the next tradable contract month while simultaneously debiting/crediting trades that were open during this time.
US Oil is a monthly futures contract. In the example below, a client who is short 50 contracts at expiration will see a debit in their account:
The account will be charged due to the price difference between the July and August contracts.
A short position benefits from the lower price of the August contract, which is offset during the future roll with the charge of $97.25
A long position is negatively impacted from the lower price and, in this example, will receive a credit.
In summary, the future roll allows for your position to remain open by offsetting the difference in contract price with a debit or credit.
|Natural Gas||Heating Oil||US Light Crude||USD Index||India50||China H Shares
|Change day||Change day||Change day||Change day||Change day||Change day|
Note: On AlphaTrader, when a position is rolled to the next month, any attached stops and limits are cancelled
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