Oil Futures Rollover - URGENT

[David]

@BigShort The idea of a rollover is not to close the position. You can just click x & open a new one if you wish to avoid the correction but that beats the whole point.

Potential problem - further clarification needed

@kpakpa There is something called a rollover with futures contracts. Since they have an expiration date, once it’s reached, your position is rolled over to the next futures contract. You had a position with Oil-20Mar which is now rolled over to Oil-21Apr. Since there’s a difference between the prices of both these contracts - an adjustment must be made to cover the difference. The adjustment is equal to the difference in price between the two contracts times the quantity you own. You can find t…

Potential problem - further clarification needed

@kpakpa The rollover doesn’t really affect the result - it’s just a way to balance the price difference. Example: If you buy 10 contracts at $10 & the next contract is trading at $11, you’ll get a rollover adjustment of 10 x ($10 - $11) = -$10. This will be added to your result to negate the difference in prices. Because you bought at $10 & now it’s at $11, you would’ve made a $10 profit. However, in order to balance things out due to the fact that it’s a different contract, a -$10 adjustment…