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Expiration on MT4 accounts

Libertex provides customers with the ability to trade CFDs on futures contracts rather than the futures contracts themselves (which, in fact, are traded on the exchange).
The way we work with these instruments is called "gluing": when a contract on the exchange finishes trading, we don't close all of a clients' available positions. Instead, we give them the opportunity to keep them open.

The exchange offers prices for several contracts simultaneously, but only one is available for customers to trade. When liquidity on it begins to decline, we change it to another contract in a process called expiration.

It's not possible to do expiration on the day when the contract finishes trading on the exchange. Liquidity is very low, so we focus on liquidity and expiration when the volumes under the current contract and the next are approximately comparable. This depends on our instrument liquidity providers since the exchange provides us with prices, but we can't cover the risks there.

What happens during expiration?

Here's an example of expiration in action. When moving from September to October for a long position, the trader receives an additional profit of $0.37 per barrel ($75.86 - $75.49 = $0.37). To level out this factor, the transaction's result will be reduced by this amount, and the spread at the time of expiration will be taken into account. In other words, the difference in contract prices ($0.37 per barrel) and the spread will be deducted from the buyer's account.

For a short position, the transition of the price stream will result in a loss of $0.37 per barrel. This loss will be compensated by crediting the $0.37 per barrel from the transaction to the trader's account. However, the spread will also be taken into consideration.
As a result, the transition of the CFD price stream from one futures contract to another will ultimately affect your financial result slightly, reducing it by the size of the spread at the time of expiration.

In addition, remember that the gap isn't always visible on the chart. If the jump from 59 to 89 or (for example) from 1 to 99 was within the scope of a one-minute candlestick (and this is possible if one of the prices was on second 05, and the other was on second 06), then the gap will not be visible on the chart. This is because the candlestick for any interval can't be divided into two parts due to the gap. As a result, only a long candlestick will be visible.

The expiration dates for each CFD instrument are determined unilaterally by the Libertex and are indicated on the website in the CFD specification section.

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