If a CFD position is held open at the expiry of the existing underlying contract, it will be automatically rolled to the next month or quarter. Meanwhile, a rollover adjustment will be made to your account to reflect the difference between the current contract month price and the next contract month price. The adjustment will be in the form of swaps charge or credit depending on the direction of the position.
|March Futures CFD’s Prevailing Market Price||14205.00/14225.00|
|April Futures CFD’s Prevailing Market Price||14235.00/14255.00|
|Rollover Adjustment (1 Lot)|
|Long CFD||USD 50.00 Charge|
|Short CFD||USD 10.00 Credit|
For a Long position, Rollover Adjustment = (BID price of Current Month's Contract – ASK price of Next Month's Contract) x Lot Size x CFD Contract Size = (14205.00 -14255.00) *1 *1 = USD -50.00
Long = bought and holding a position at current ask price of 14225.00; To rollover, you need to sell it at current price of 14205.00 to close the position and re-open/buy at new ask price of 14255.00; while you are long/holding the position, you pay borrowing cost but the value of your underlying goes up;
In this example, if you hold your Long position throughout the rollover, the valuation of your position would go up by (14235.00 – 14205.00) * 1 * 1 = USD 30.00. Net effect of rollover = Revaluation – Rollover Adjustment = 30 – 50 = USD -20.00
For a Short position, Rollover Adjustment = (BID price of Next Month's Contract - ASK price of Current Month's Contract) x Lot Size x CFD Contract Size = (14235.00 -14225.00) *1 *1 = USD 10.00
Short = old at current bid price of 14205.00 and you need to buy back at current offer price 14225.00 to close the position, and re-open/sell at a new bid price of 14235.00
If you hold your Short position throughout the rollover, the valuation of your position would go down by (14225.00-14255.00) * 1 * 1 = USD -30.00.
Net effect of rollover = Revaluation – Rollover Adjustment = -30 + 10 = USD -20.00
So essentially the net value of a rollover is the cost of its bid-ask spread (2000 U.S. cents for CN50): 20.00 * 1 * 1 = USD 20.00
|Product Name||Symbol||Contract Month||Product Launch Date||Product Expiry Date|
|FTSE CHINA A50 INDEX FUTURES CFD||CN50||September
Rollover is essentially a close and re-open of a position at the expiry of the contract. As a result, your client will be subject to a cost if he/she does not close their position before the market close of NAG Markets’s last trading day.
Rollover dates are unique to contracts being traded, please refer to the company notice on official website or NAG Markets BIZ Centre to check the NAG Markets CFDs Contracts’ Expiration Schedule on an ongoing basis.
22:00:00 GMT (21:00:00 GMT during DST) is considered the beginning and end of the trading day. Rollover charge or credit will apply to any futures CFDs position that are open at 21:59:59 GMT (20:59:59 GMT during DST) sharp on the roll.
The rollover will be shown under Swaps column in MT5 terminal, which will be added to or subtracted from the account balance when the position is closed.
Yes. As rollover contributes to a profit or loss, it may reduce an account’s free margin to the level that is below the stop-out ratio. Therefore, a stop-out could be triggered due to rollover.
We rely on the information provided by our Liquidity Providers or information from reliable public sources such as Bloomberg as an alternative mean.
All pending orders for CFDs will expire at the end of each trading day excluding Stop Loss and Take Profit which will remain effective unless modified/cancelled by the client. Please pay close attention to your Stop Loss / Take Profit levels prior to rollover.