We offer expiring CFDs based on the front month futures price of WTICrude and BrentCrud. These expiration rules do NOT apply to WTISpot and BrentSpot, which are non-expiring.
At the beginning of the final day of the contract (its expiration date), we will:
- Adjust the quote of the market by the difference between the last traded prices of the front month and the next month’s price (the spread).
- Make a credit/debit adjustment to your accounts with open positions based on the spread.
- We will start quoting the next month’s contract prices.
|Ticker in MT4||Description||Expiration|
|.WTICrude||WTI Light Crude Oil||2020/Jun/20|
|.BrentCrud||Brent Crude Oil||2020/Jun/30|
On 17 December, we quote 61.500 for the WTI market. This price is based on the current front month for WTI, which in this example is the January 2020 contract (expiring on 19 December). You decide to SELL 0.1 CFDs and hold your position to 19 December or beyond the expiry date.
At the beginning of 19 December, we switch from using the January 2020 quote to the February 2020 quote as the basis for the price, because the underlying January 2020 futures market expires on 19 December.
The last traded prices of the underlying NYMEX futures contract for the month are 60.93 (January) and for the next month 60.800 (February) so our price WTI is adjusted down by 130 pips.
Your open short position is adjusted by 130 pips (+130 for long positions, -130 for short positions.) In this example, the ACCOUNT will be debited (60.800 – 60.930)*1000*0.1= – $13.
If the quote had risen by 130 pips, you would be credited the equivalent of 130 pips.
This happens each month when the new quote is issued.