Hi, without getting blasted off the page , is it me being very thick or does this make sense to someone ??? I am missing something here ?
I know there's a fee for rolling over ..but this calculation/ explanation doesn't make sense to me ...I read this as whatever I make they take in a fee, one cancels out the other which doesnt make sense , does it ? or is it me ? Am I really missing something here cos im really having trouble getting my head around this . And please don't blast me for asking Nd please don't say ' if I don't understand I shouldn't be trading .... I just need to understand the explanation , which I don't . It does not seem to be right ??
Please see below ....
"Please note that when a position is automatically rolled over from one contract period to the next period, an adjustment is made to your account to reflect the difference between the rate of the previous contract and the rate of the new contract. The value of your position continues to reflect the impact of market movement based on your original opening level. Accordingly, the adjustment is compensated for in the value of your open position.
Let’s say (for example) that you have a Buy position on Cocoa for the amount of 20 contracts. The last Sell rate for Cocoa's previous contract was 9.5, whilst the first Sell rate for the new contract is 10, this means that your open position is now valued USD10 higher, ie: (10 – 9.5) x 20 = 10. An adjustment of USD10 will be deducted from your account, ie: (9.5-10) X 20 = -10.
In your case you have a Buy position on Oil for the amount of 1000. The last Sell rate for Oil previous contract was 48.28, whilst the first Sell rate for the new contract is 48.92, this means that your open position is now valued higher, ie: (48.92 – 48.28) x 1000 = 640. An adjustment will be deducted from your account, ie: (48.28-48.92) X 1000 = -640
These actions complement each other, and ensure accurate profit/ loss calculations for each contract period."
So if I am higher by +640 they deduct -640 off me for rolling over ??? Is that right ?????
I know there's a fee for rolling over ..but this calculation/ explanation doesn't make sense to me ...I read this as whatever I make they take in a fee, one cancels out the other which doesnt make sense , does it ? or is it me ? Am I really missing something here cos im really having trouble getting my head around this . And please don't blast me for asking Nd please don't say ' if I don't understand I shouldn't be trading .... I just need to understand the explanation , which I don't . It does not seem to be right ??
Please see below ....
"Please note that when a position is automatically rolled over from one contract period to the next period, an adjustment is made to your account to reflect the difference between the rate of the previous contract and the rate of the new contract. The value of your position continues to reflect the impact of market movement based on your original opening level. Accordingly, the adjustment is compensated for in the value of your open position.
Let’s say (for example) that you have a Buy position on Cocoa for the amount of 20 contracts. The last Sell rate for Cocoa's previous contract was 9.5, whilst the first Sell rate for the new contract is 10, this means that your open position is now valued USD10 higher, ie: (10 – 9.5) x 20 = 10. An adjustment of USD10 will be deducted from your account, ie: (9.5-10) X 20 = -10.
In your case you have a Buy position on Oil for the amount of 1000. The last Sell rate for Oil previous contract was 48.28, whilst the first Sell rate for the new contract is 48.92, this means that your open position is now valued higher, ie: (48.92 – 48.28) x 1000 = 640. An adjustment will be deducted from your account, ie: (48.28-48.92) X 1000 = -640
These actions complement each other, and ensure accurate profit/ loss calculations for each contract period."
So if I am higher by +640 they deduct -640 off me for rolling over ??? Is that right ?????
Am I being thick ???
