Buy - price 22.975
Sell - Price 23.525
40 CFDs
Where can I see the adjustment value to make this a loss?
This is April not March
Can I get a response please?
Thanks
@kpakpa I’m actually not certain where it’s visible on the web platform. I think you can find easily in the mobile app.
As for your situation, even just taking a look at the Oil screenshots provided in this topic, you can see that the price difference between the two contracts is approximately $3.
$3 x 40 = $120 adjustment. I’ll DM you with more details about your position.
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“you can see that the price difference between the two contracts is approximately $3.”
Not seeing the difference (probably being blind) could you direct me to the post that shows the difference?
So the contract rollover did have a detrimental effect on the position. It would be great if the app could do a push notification or something like that to warn people before the future contract is due to expire? Please can you feed this back to the technical team?
Thanks
Evening All
I hope you are all well considering the current climate.
If someone could help me with the below It would be greatly appreciated - thank you in advance.
Yesterday, I was trading Oil-20April… mobile app was super erratic and I lost £700 ish. No problem we all understand the risk.
Issue I have is the app was showing one price where the actual price was way off. Trying to pull some lose back I went back in think the price was $19/$20 per barrel - turns out it was $23.
Could someone explain this for me please:
To even prove the purchase time Vs price:
I have another image which I will post
@David - Please take a look into my issue. I have detailed with images and you will access to the store data behind the scenes.
Looks like you had a major issue with the oil price with numerous people losing money as a result.
I feel the app is brilliant, but confidence is key. You lose the confidence you lose the clients!!
Morning Nick
Appreciate the reply, but your wrong.
At the time of the trades the buy price was nowhere near the $19,$21 Mark. That day it never went below $22. Maybe new, but I made £1900 in 4 days before I went into oil.
Can you explain my $21 dollar trade running a lose when the buy price is at $23?
Kind regards
Wes
@kpakpa Take a look at the BUY price of the 1st screenshot of the topic to which I was explaining that the spread is $20.365. The screenshot of the next contract <-> Oil-Apr was $23.735. I know it’s not exactly $3 but the screenshots probably weren’t taken at the exact same moment in time.
Also, as mentioned previously, rollovers don’t have a positive or negative affect, they just transfer your position to the next contract. Check the calculations I sent you in personal messages. Your opening price on Oil-20Mar was about $3 above the closing price so it’s normal that you’re at a loss.
@WesDunn There’s an explanation about this in my previous post (No.14): Potential problem - further clarification needed
I’d highly recommend you take the time to go through it.
We also have a video that includes rollover calculation examples: https://www.youtube.com/watch?v=7F60eOVz_Qg&feature=youtu.be
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Just to make you aware I am taking this matter extremely seriously and am not out to defamate your company should this issue be actioned and resolved correctly.
Ok so the link to the thread I opened can be found here:
Now regarding the fact that you dropped the price down to $19 on the price of oil in the evening was explained by your colleague as receiving the update on your platform from CME Group. Ok so after checking the cme link you sent I decided to check it out for myself - please visit this link: https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_quotes_settlements_futures.html
Crude Oil Futures
Now you will clearly see a highlighted message on there site that states: 'All market data contained within the CME Group website should be considered as a reference only and should not be used as validation against, nor as a complement to, real-time market data feeds. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). These prices are not based on market activity. ’
This is a CLEAR message that this sites prices are not published on the market data platform which means that Trading 212 have no right to squeeze down the market to that price.
The prices indicated by CME group are options based and your trading platform doesn’t even trade options. You have no right to suddenly change your platform prices to these prices to squeeze out your 82% of buyers on this particular asset - then bounce the price back up $3 which I’ll come on to in a moment.
There is no clear prior warning to your traders of contract rollovers and how it will effect there positions. As an FCA regulated entity you have a legal obligation to your customer in pre warning certain actions that could change an outcome massively such as this rollover situation.
This action resulted on my positions being margin called and shut out the market at which point I didnt understand what was happening and bought another 2 positions @ around $20 at which point your platform decided to return to the real correct market derived price above $23 - however my new positions didnt show the profit the other way! This is a fraudulent action or a system error which you need to correct and compensate.
You are able to review in detail the specific positions on my account. I closed both those positions at over $23 price and was not paid out correctly on those trades.
This is whats known as a double down move and I will not hesitate to action this further with the FCA should this not be resolved.
I am not a trader who complains about a legitimate loss - as clearly indicated in my trading history - however this act is disgusting and needs to be auctioned.
I have screenshots of everything including graphs from before and after and the specific positions. Please let me know if you need anything from my side.
Kind regards
@mpenkar1 Just to be clear I am not an employee of Trading 212. I will be staying out of this conversation for now.
so long story short, you are claiming that T212 has manipulated prices with the goal of forcing a small, quick profit??
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@mpenkar1 It seems like you’re having a hard time understanding the concept of futures contracts & rollovers. Let me explain in great detail:
As per Investopedia: A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future.
When trading CFDs, you’re speculating on where the contracts will end up trading.
Futures have nothing to do with options. When trading Oil-20Mar, you’re speculating on the price of the underlying CME futures contract.
It’s true that prices on CME’s website are indicative but that’s because nowhere on the web are you allowed to see actual raw exchange data fee-free. However, they’re still pretty close, almost completely identical.
If you search on the web for contract “CLJ20” you’ll find more sources that confirm this price. I’ll add another two for reference.
https://www.marketwatch.com/investing/future/clj20
The price of the current contract differs to the previous one because it’s considered a different instrument, contracts have a lifespan. Thus, in order for your positions not to be closed at the expiration date (end of lifespan), rollover & rollover adjustments come into play, so that you can keep your positions open. It has neither a negative nor positive impact on your result.
As per the Trading 212 FAQ: https://www.trading212.com/en/Frequently-asked-questions?cId=12
To negate the impact of the new futures contract having a different price to the previous one, a rollover adjustment is made to the open position. The value of the positions continues to be the same, keeping the original opening price & trade quantity. If the new contract is traded at a higher price, BUY positions will receive a negative adjustment while SELL positions will receive a positive one and vice-versa if the instrument is traded at a lower price.
In essence, the difference in price between the current and next futures contract will be added or subtracted to nullify the impact on the open position’s result.
This is the reason why your positions that had an opening price of $20 (on Oil-20Mar) were still not profitable when Oil-20Apr was trading at $23 - because of the adjustment.
If there was no adjustment, everyone in the world would trade the difference of the contracts just before expiration & make an infinite amount of money, sounds too good to be true, right?
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