When you hold a Future position, your position may be affected by a rollover when the underlying futures contract approaches expiry.Rollover is the process of moving from the expiring futures contract to the next available contract. Since the expiring futures contract and the next available contract may have different prices, a cash adjustment may be applied to your position to reflect the price difference.The adjustment can be a debit or a credit, depending on the price difference between the expiring futures contract and the next available contract.
How does the rollover adjustment affect my trading account?
A rollover adjustment reflects the price difference between the expiring futures contract and the next available contract.
Depending on the applicable price difference, the adjustment may result in:
- Debit: An amount deducted from your trading account.
- Credit: An amount credited to your trading account.
The final adjustment amount is determined after the relevant rollover period, once the applicable end-of-day prices are available.
You can find the adjustment as a separate entry in your trading account history or statement, labelled “Cash Adj – Rollover”.
The rollover adjustment is separate from your normal trading profit or loss and any applicable swap or overnight financing charges.
A rollover adjustment reflects the price difference between the expiring and replacement futures contracts. The overall financial impact may also depend on subsequent market movements, position direction and applicable trading costs.
When will my CFD position be rolled over?
Rollover dates vary depending on the trading product and the expiry schedule of its underlying futures contract.
Ultima Markets will notify clients by email and publish the relevant rollover information on the official website before the rollover takes place.
You can check the latest rollover dates and affected products through the CFD Rollover Announcements.
Which trading products are affected by rollover?
Rollover applies to eligible future products with underlying contracts that have expiry dates.
Depending on the trading product, rollover may occur:
- Monthly: For products with monthly futures contract expiries.
- Quarterly: For products with quarterly futures contract expiries.
- According to the contract schedule: For products with other applicable expiry cycles.
Not all CFD products are subject to rollover.
What should I check regarding product rollover?
Before holding a futures CFD position through a rollover date, you should:
- Check the rollover schedule: Review the latest rollover announcement for your trading product.
- Understand the adjustment: Be aware that the rollover may result in a debit or credit to your trading account.
- Review your open positions: If you do not want your position to be affected by rollover, consider closing it before the applicable rollover date.
- Check your trading account history: Review the rollover adjustment after it has been applied.
The final rollover adjustment may vary between rollover periods, depending on the price difference between the expiring and next futures contracts.
