What is a Rollover?
A rollover is the process of keeping a position open beyond its expiry. Whenever a futures contract reaches its expiration date, all open positions and orders are automatically rolled over to the next contract.
How will it affect my open positions?
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.
Will Take profit & Stop loss orders also be rolled over?
Take profit & Stop loss orders are also adjusted to reflect the price of the instrument in the new contract.
Will entry pending orders be rolled over?
To avoid discrepancies with current criteria, entry pending orders will automatically terminate before the rollover.
Can I disable the Rollover?
The Automatic Rollover will be active by default, but it can be disabled via Settings -> Trading preferences -> Positions rollover. If the rollover is disabled, futures positions will automatically close once the expiration date is reached.
Example of rollover adjustment calculation