Rollover is an automated process to transfer your position to the next available contract. It involves changing the contract on which the current price is based. This concept is crucial for traders who hold positions overnight or longer.
When Does Rollover Occur, And Where Do I Find The Info?
The timing of rollover depends on the specific futures trading symbol. Each symbol has its rollover information, which can be found in the web trader and mobile app interfaces of SimpleFX. To check this information in our webtrader, just:
1. Enter the instrument’s symbol whose rollover date you want to check, and then click “Symbol Information.”
2. You will find the date at the end of the column.
To check this information in our mobile app, just:
- Search for the instrument. To see the rollover date, check the symbol information by clicking the “i” icon.
2. Here is Your information!
It should be noted that rollover information appears only for the instruments to which it applies.
For a comprehensive understanding, traders can also refer to the special section of our site, where in the “Rollover Dates” paragraph, we provide an up-to-date list of CFD symbols with futures-based underlying, along with their respective rollover dates.
Will My Position be Automatically Closed?
As a rule, you will never have a closed position on an SFX account. When a position is rolled over, an adjustment is credited or debited to your open position to offset the difference in rates between the previous and the new contract. This automatic mechanism is beneficial as it saves from the hassle and potential losses of manually closing and reopening positions, especially considering the spreads.
Your position will maintain the same opening price and direction (buy or sell) as the original. Due to the switch to a new contract, the next day’s current price comes from the new contract. Therefore, swaps are calculated as the difference between the closing prices of the two contracts.
Simply put, at the end of the day, we charge swaps in the amount of the closing price of the 2nd contract minus the closing price of the 1st contract. For instance, if the difference is 10 points, 10 points will be added or subtracted in swaps.
Is Rollover Free Of Charge?
At SimpleFX, we’re excited to boost your trading journey with a fantastic offer: no rollover costs! That’s right, zero, zilch, nada! We’re all about giving you a top-notch trading experience, and this is just one of the ways we’re making it happen. With our free rollover service, we’re not just your broker but your partner in trading success!
Conclusion
Rollover is an essential aspect of trading that allows for the seamless transition of positions across trading days. SimpleFX offers an automated system that handles the rollover process efficiently, ensuring that traders can maintain their positions without needing to intervene manually, thus saving time and reducing potential losses due to spreads.
