How does expiry work?
A future contract carries an obligation to buy or sell the underlying asset at a determined time in the future at a price set today.
Libertex trading platform allows you to trade CFDs on futures. A CFD, or contract for difference, is a financial instrument allowing you to profit on underlying asset price fluctuations without owning the asset itself.
CFD on Futures Trading Conditions
- Future contracts do have a term specified by the stock exchange.
- Futures also have an expiry date, upon which all trades based on the respective future contract a closed. To view futures' expiry dates, please refer to Instrument Specifications on our website.
- When a future contract expires, all pending orders associated with it are cancelled.
Please note: As during the last days of a future's life its liquidity drops down drastically, the Company carries out the rollover to the nearest futures traded before the expiry date of the respective future contract.
To allow traders to hold long-term positions on CFDs on futures, these traders are given an automatic rollover feature.
Trade Rollover Process
- The result of the trade is determined upon a future contract expiry.
- Technically, the trade is closed at the last contract price available.
- The 'old' contract is substituted then with a 'new' one, applying different quotes.
- The trade is opened with respect to a new contract, with the amount and multiplier value staying the same. Technically, a new trade is made with regards to a new contract, so the trading fee is debited.
When a contract is rolled over, such an open price is calculated so that at the moment of the first quote of the new contract available, the result of the previous trade received upon expiry may be saved.
To calculate a new open price on your own, you can refer to the following formula:
NewOpenRate' = 'NewContractPrice' * 'LastOpenRate' / 'ExpLastPrice', where:
- NewOpenRate is an open price for the new trade
- NewContractPrice is the first quote available for the new contract upon expiry of the previous one
- LastOpenRate is the previous open price
- ExpLastPrice is the last quote available of the previous contract
A future contract carries an obligation to buy or sell the underlying asset at a determined time in the future at a price set today.
Libertex trading platform allows you to trade CFDs on futures. A CFD, or contract for difference, is a financial instrument allowing you to profit on underlying asset price fluctuations without owning the asset itself.
CFD on Futures Trading Conditions
- Future contracts do have a term specified by the stock exchange.
- Futures also have an expiry date, upon which all trades based on the respective future contract a closed. To view futures' expiry dates, please refer to Instrument Specifications on our website.
- When a future contract expires, all pending orders associated with it are cancelled.
Please note: As during the last days of a future's life its liquidity drops down drastically, the Company carries out the rollover to the nearest futures traded before the expiry date of the respective future contract.
To allow traders to hold long-term positions on CFDs on futures, these traders are given an automatic rollover feature.
Trade Rollover Process
- The result of the trade is determined upon a future contract expiry.
- Technically, the trade is closed at the last contract price available.
- The 'old' contract is substituted then with a 'new' one, applying different quotes.
- The trade is opened with respect to a new contract, with the amount and multiplier value staying the same. Technically, a new trade is made with regards to a new contract, so the trading fee is debited.
When a contract is rolled over, such an open price is calculated so that at the moment of the first quote of the new contract available, the result of the previous trade received upon expiry may be saved.
To calculate a new open price on your own, you can refer to the following formula:
NewOpenRate' = 'NewContractPrice' * 'LastOpenRate' / 'ExpLastPrice', where:
- NewOpenRate is an open price for the new trade
- NewContractPrice is the first quote available for the new contract upon expiry of the previous one
- LastOpenRate is the previous open price
- ExpLastPrice is the last quote available of the previous contract