Future contracts have expiration dates, followed by a physical delivery of the product. However, since CFDs deal with price movement and not ownership/physical delivery of the underlying asset, we don’t deliver or close the contract upon reaching its expiration. Instead, as long as the deal is open, we roll it over to the next contract a few days before the underlying contract’s expiration date—known as the Rollover Date.
At iFOREX Europe, all deals whose underlying asset is a Future contract which are not closed before reaching their Rollover date are automatically rolled over by the Company to the next contract’s Rollover date, so that the deal remains open. Upon effectuating such rollover, the deal’s open P/L (Profit / Loss) will express the price difference between the expired contract and the new one, and will also include a mark-up spread. In addition, all associated Limit Orders shall be adjusted to the new future contract.