Crude Oil Rollover mechanism

When trading commodities such as crude oil on the MT4 / MT5 platform, they will be rolled over at the maturity date of the futures contract.

This is because the position has an expiration date.

If you want to continue to hold a position beyond this deadline, you will need to close your previous position at the maturity date and open a new position with a new futures contract.

If you do not want to roll over the position, you need to close the position before the rollover date.

Find out more about VantageFX’s Rollover Condition

Will there be a loss during the crude oil rollover process?

You may see a “loss” in your account during the rollover process.

But rest assured that there are no costs incurred during this process.

If the amount in the account decreases, the same amount will be added to the account.

The new contract price of crude oil < Price of crude oil so far = credit for long position/debit for the short position New Crude Oil Price > Previous Crude Oil Price = Long Position Debit / Short Position Credit

Rest assured that VantageFX will notify you when crude oil rollover occurs.

If you want to keep your position, Vantage FX will automatically renew your monthly futures contract.

Go to VantageFX Official Website

Crude oil rollover example

For a 10 barrel CL-OIL transaction, the price is $ 98.50, the monthly contract difference is +50 pips ($ 0.50), and the calculation is as follows:

Long position: (10 x -0.50) + (-0.04 x 10) + ((10 x 98.50 x -0.002 x 1) / 360) =-$ 5.41

Short position: (10 x +0.50) + (-0.04 x 10) + ((10 x 98.50 x -0.002 x 1) / 360) = + $ 4.59

All crude oil rollover adjustments are calculated at the quoted price of the commodity.

If your account is denominated in another currency, it will be converted at the current rate.

Want to open a live account and start trading crude oil on the Vantage FX platform?

Go to VantageFX Official Website and start your registration for free today.