What is an automatic rollover product?

Automatic rollover products are financial instruments that automatically move to a new contract period when the current one expires. This means their prices adjust to the new contract without you needing to do anything.

At Skilling, our automatic rollover products include:

• Indices
• VIX
• Soft Commodities: Coffee, Cotton, Sugar, Cocoa, Corn, Soybean, Wheat
• Braind
• Tnote
• Bund

When a contract expires, Skilling automatically rolls over all open positions and orders to the next contract for free. If the new contract has a different price, we adjust your positions to ensure the value of your open positions and your equity remain the same.

What is a rollover adjustment?

A rollover adjustment is a change made to your position when a contract expires and rolls over to the next one. This adjustment ensures that the value of your position remains unaffected by the price change between the old and new contracts.

How does a rollover adjustment work?

When the contract rolls over, the price changes, but the value of your position remains based on the original opening level and size. Here's how it works:

• If the new contract price is higher:
  • Buy positions get a negative adjustment.
  • Sell positions get a positive adjustment.
•  If the new contract price is lower:
  • Buy positions get a positive adjustment.
  • Sell positions get a negative adjustment.

Example of a rollover adjustment

You have a Buy position of 100 units of Coffee CFDs.

• Old contract Buy price: $221.30
• Old contract Sell price: $221.25
• New contract Buy price: $222.50
• New contract Sell price: $222.45

Calculation:

• Sell price difference: $222.45 (new) - $221.25 (old) = $1.20
• Adjustment for your position: 100 units * $1.20 = -$120

Summary: You still hold 100 units of Coffee CFDs, but your position is adjusted by -$120 to keep your equity the same.

Important notes:

1. Stop Orders and Limit Orders are not adjusted automatically. Please check the new contract price and adjust your orders to avoid them being closed out unexpectedly.
2. If your account balance is not adequate, a rollover can cause a stop-out of your position. Make sure to maintain sufficient funds in your account to cover any potential adjustments.

Rolling Dates for Skilling’s Automatic Rollover Products