Automatic contract rollover


In other words, when a position is automatically rolled over from one contract period to the next period, an adjustment is made to your account to reflect the difference between the rate of the previous contract and the rate of the new contract. The value of your position continues to reflect the impact of market movement based on your original opening level. Accordingly, the adjustment is compensated for in the value of your open position. These actions complement each other and ensure accurate profit/loss calculations for each contract period. . For example, you have a Buy position on Cocoa for the amount of 20 contracts. The last Sell rate for Cocoa's previous contract was 9.5, whilst the first Sell rate for the new contract is 10, this means that your open position is now valued $10 higher, ie: (10 – 9.5) x 20 = 10. An adjustment of $10 will be deducted from your account, ie: (9.5-10) X 20 = -10.