Contract roll-over

CFDs is stricly a financial instrument by which a trader secure his price of chosen underlying asset. By its nature CFDs enables financial speculations on rise or decline of asset price, CFDs exactly replicate what is happening on commodity exchange, i.e. price development, conditions of volatility and liquidity or here mentioned contract roll-over. General rule is that the next contract period is the most liquide one and that prices of other contract periods can differ due to expectations of markets towards future. Each commodity future contract has its delivery term or term date of settlement, or the expiration date. If the trader wants to stay in his trading position without any financial settlement of held position, his position can be so called rolled-over into other contract period. Contract period for most futures is one month, at share indices it is mostly quarter.

Roll-over of CFDs futures contracts.

If you have a contract that was traded for price X, and the contract expires and new contract is opened for price Z, Your account must be adjusted by adding or subtracting of difference according to the direction of position. This is not something what would CFDs exchange do. It is standart practise on market and in trading procedures. CFDs exchange participants should understand this fact and understand, how the markets work. Stock Exchange operator bears no responsibility for their level of knowledge and understanding. If the market would work in the way, that you could take a look, where would the future contract be traded and if it was for higher price than is the current one, then everyone would enter into long positions near the expiration date and take advantage of the roll-over or vica versa. This method, as it is certainly clear, would not be useful neither for trader nor for brokers and it would not lead to a valuable business partnership.

For Your overview, the roll-overs are happening around 4:15 PM EST, to be placed for following trading section. The roll-over time, which is usually used, is two days before the last trading day of expiring contract. CFDs exchange operator avoids using the last two days because they can be extremelly volatile and can have a huge range of the highest and lowest prices, which do not reflect aktivity of entire market. But the operator wants to roll-over the contract as close to the expiration date as possible, so "First Notice Day" date of any contract is not taken into consideration. In addition, the roll-over are managed on competent stock exchanges and CFDs electronical exchange has no control over when they will be done. The whole process is completely automated and is displayed as such when it is happening and therefore we can then see this price in real time on your trading platform then. The roll-over can occur few days earlier or after the scheduling date. If you have open CFDs contract in the time of roll-over and it will be pricely overrated, this fact will be reflected into the status of your account (including the statement) and you will be notified by the operator of exchange via e-mail message.

As active traders you should be aware of how the markets work. First of all the futures markets, which are offered here and which you trade on. You can always contact a trading dealer and ask for assistance regarding this issue, if you are not sure.

Timetable of CFDs futures contracts roll-overs can be found here.