CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

What are Futures Contracts?

Futures contracts are standardized contracts that are uniformly formulated by the futures exchange and require the delivery of a certain number of objects at a specific time and place in the future. The crude oil USOILF and UKOILF provided by platform are futures products.

What is Rollover in Futures Trading?

Rolling a futures contract forward is the process of carrying a futures contract forward from one expiration date to a further out expiration date. Rolling a futures contract allows a trader to extend duration of a trade, but when rolling, the trade can come at a discount or a premium depending on open interest/volume. After the rollover, customers can continue to hold the order, and the status of the position will not change.

 

Advantages of Investing in Oil Futures?

Futures contracts are standardized agreements that typically trade on an exchange. One party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. The selling party to the contract agrees to provide it. Oil futures have no swap fees, low required margin per lot, and is heavily influenced by market fluctuations, making them very popular amonng the investors.

 

What is Future Rollover Fee?

Because the initial contract and the new contract are two different agreements, there will always be a price difference between the contracts in different months. Therefore, during the rollover, Rollover costs are incurred; they are a result of the price difference between the two contracts. Rollover costs are not all transaction costs, but rather corrections to the profit and loss of orders due to price differences. Profits resulting from rollovers are deducted and losses are compensated.

(A) Some platforms will charge a fee for automatic rollovers (a part of the rollover fee). In pursuit of making trading convenient for clients, Eagles Markets has eliminated additional rollover fees. Therefore, in Eagles Markets trading futures products, The automatic rollover of the future instruments will not cause additional losses to clients.

(B) From the perspective of the market curve, there may be gaps or high openings during the rollover (please note that this fluctuation is not actually caused by changes in the market, but is caused by the price difference when the two contracts are switched).

How Are the Future Rollover Fees Calculated?

The easiest formula to calculate the futures rollover fee:

Future rollover Fee (Buy) = (Contract-size (Lots)) x (Sell price of the last constract - Buy price of the new contract) x (Point size)

Future rollover Fee (Sell) = (Contract-size (Lots)) x (Sell price of the new constract - Buy price of the last contract) x (Point size)

Most of the platforms will add an additional fee to caculated result

Eagles Markets applies the calculated result directly as the future rollover fee for the sake of easier confirmation by client

Oil rollover dates

Contract UKOIL USOIL
Dec-1910/31/201911/19/2019
Jan-2011/29/201912/18/2019
Feb-2012/30/20191/17/2020
Mar-201/31/20202/19/2020
Apr-202/28/20203/19/2020
May-203/31/20204/20/2020
Jun-204/30/20205/18/2020
Jul-205/29/20206/19/2020
Aug-206/30/20207/20/2020
Sep-207/31/20208/19/2020
Oct-208/28/20209/21/2020
Nov-209/30/202010/19/2020
Dec-2010/30/202011/19/2020