When you’re trading an instrument, such as Oil on the MT4/MT5 platform, if you hold that position over the monthly expiration date of the futures contract that its price is based on, you will encounter what’s called a rollover. This is because Oil is a futures contract which has a set expiration date.
If you do not wish for your position to be rolled over, then you should close your position prior to the rollover date.
The monetary impact is largely nullified, as the changes in values of the open positions, are offset by a debit or credit adjustment made to the account. It appears on your statement as ‘Cash Adjustment-Rollover’ and is shown as either a loss or profit based on the direction of the trade.
CL-OIL futures (May contract) expires with the ask at $20.050 and bid at $20.000.
New CL-OIL futures (June contract) opens trading at ask $26.050 and bid $26.000.
One Standard contract size for CL-OIL is 1,000 barrels.
If you hold one lot of long CL-OIL, you will be charged (26.050-20.000) *1000 = -$6050.
The ‘Cash Adjustment- Rollover’ is Dr -$6050
If you hold one lot of short CL-OIL, you will be credited (26.000-20.050) *1000 = +$5950.
The ‘Cash Adjustment- Rollover’ is Cr +$5950
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