Do CFDs expire on Libertex? How does this happen?
A futures contract carries an obligation to buy or sell the underlying asset in a determined time in the future at a price set today.
Libertex trading platform allows you to trade CFDs on futures. CFD, or contract for difference, is a financial instrument allowing you to trade on underlying asset price fluctuations without owning the asset itself.
CFD on Futures Trading Conditions
Futures contracts do have a term specified by the stock exchange.
Futures also have an expiry date upon which all trades based on the respective futures contract are closed. To view the futures' expiry dates, please refer to Instrument Specifications on our website.
When a futures contract expires, all pending orders associated with it are cancelled.
Please note: As during the last days of a futures life, its liquidity drops drastically, the Company carries out the rollover to the nearest futures traded before the expiry date of the respective futures 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 futures contract expiry.
Technically, the trade is closed at the last contract price available.
The 'old' contract is substituted 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 regard 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 futures contract carries an obligation to buy or sell the underlying asset in a determined time in the future at a price set today.
Libertex trading platform allows you to trade CFDs on futures. CFD, or contract for difference, is a financial instrument allowing you to trade on underlying asset price fluctuations without owning the asset itself.
CFD on Futures Trading Conditions
Futures contracts do have a term specified by the stock exchange.
Futures also have an expiry date upon which all trades based on the respective futures contract are closed. To view the futures' expiry dates, please refer to Instrument Specifications on our website.
When a futures contract expires, all pending orders associated with it are cancelled.
Please note: As during the last days of a futures life, its liquidity drops drastically, the Company carries out the rollover to the nearest futures traded before the expiry date of the respective futures 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 futures contract expiry.
Technically, the trade is closed at the last contract price available.
The 'old' contract is substituted 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 regard 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