A CFD rollover occurs when a futures CFD reaches its expiry date and an open position is automatically transferred to the next available contract.
This allows traders to continue holding their positions without manually closing and reopening trades.
How Is CFD Rollover Calculated?
The rollover adjustment is based on the price difference between the expiring contract and the new contract, along with applicable spread costs.
Rollover Adjustment = (Number of Lots × Contract Size × (New Contract Price - Old Contract Price)) - Spread Cost
Important Notes
- CFD rollover applies only to futures-based CFDs with expiry dates.
- The rollover adjustment may result in a debit or credit to the trading account depending on the price difference between contracts.
- Spread costs are calculated based on the market spread at the time of rollover.
- Traders should check the expiry schedule for the relevant instrument before holding positions over the rollover date.