What is crude oil futures rollover? How does it work? Table of Contents

What is crude oil futures rollover?

When you trade crude oil on the MT4/MT5 platform, when the monthly price-based futures contract expires, you will encounter a rollover.

If you do not want to encounter such problems, you should complete the liquidation operation before this day.

The reason for the futures rollover is that crude oil, as a futures trading product, has an expiration time for its contracts.

If you want to continue to hold the position on hand, your original contract will expire and be closed and replaced by a new futures contract.

If you do not want to be rolled over, then you can close the position before the delivery date.

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Will rollovers cause me any loss?

During the renewal process, your account may show losses.

Please note that you actually have no fees during the renewal process.

When the amount of your account shows a decrease, an equal amount will be added to your account.

New contract price old contract price = loss difference / gain difference

VantageFX will use the notification function in the platform to remind traders when the rollover comes, that traders who trade crude oil on Vantage FX will never be kept in the dark.

If you want to continue to hold positions, VantageFX will automatically complete the crude oil rollover process between monthly futures contracts for you.

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Calculation example of crude oil rollover

For a 10-barrel CL-OIL transaction purchased at $98.50, the difference in contract replacement is +50 pips ($0.50), and the rollover difference is calculated as follows:

Buy: (10×-0.50)+ (-0.04×10)+ [(10×98.50×-0.002×1)/360]=-$5.54

Sell: (10×+0.50)+ (-0.04×10) + [(10×98.50×-0.002×1)/360]=+$4.59

All crude oil rollover adjustments are made according to the currency type used in the futures contract.

If your account is traded in other currencies, the adjusted amount will be automatically converted according to the current market exchange rate.

Act now and trade crude oil on the Vantage FX platform.

Submit the registration information in the form below to start trading.

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