Do I Incur Any Losses During the Oil Rollover Process?
The monetary impact is largely nullified, as the changes in values of the open positions, are offset by a debit or credit adjustment made to the account. It appears on your statement as ‘Cash Adjustment-Rollover’
Example:
CL-OIL futures (May contract) expires with the ask at £20.050 and bid at £20.000.
New CL-OIL futures (June contract) opens trading at ask £26.050 and bid £26.000.
One Standard contract size for CL-OIL is 1,000 barrels.
If you hold one lot of long CL-OIL, you will be charged (26.050-20.000) *1000 = -£6050.
The ‘Cash Adjustment- Rollover’ is Dr -£6050
If you hold one lot of short CL-OIL, you will be credited (26.000-20.050) *1000 = +£5950.
The ‘Cash Adjustment- Rollover’ is Cr +£5950
Trade oil with
500:1
Leverage