What is Rollover?

What are rollovers and how to calculate

All Axi index contracts are based on a relevant futures exchange price. Future contracts have an expiry date that can be several months ahead, and those forward prices can be higher or lower than the cash price, depending on market conditions.

To avoid the risks of final day volatility, Axi “rolls over” contracts one trading day prior to the exchange expiry. To ensure clients are not adversely affected, Axi will simply make any necessary cash adjustments.

For example, when the Australian SPI contract expires in March, the price rolls over to the next quarterly price (June). Because of this, the price displayed on the MT4 platform is likely to increase or decrease, depending on the value of the June contract relative to the March contract. This does not represent an actual price increase or decrease, simply a movement to a new reference point. As such, traders will incur no profit or loss when rolling over to a new contract except for the spread.

You can view a full list of important CFD contract rollover dates here.

Additionally, read more about our Fees & Charges here.

Rollover examples

Let us say the SPI for March closes at 5050/5051, and the SPI for June opens at 5000/5001.

Example 1: You buy 10 contracts

If your position is a Buy, it closes on the old Bid price of 5050 and reopens on the new Ask price of 5001. Because you are in a Buy and the new market price has decreased, your open trade P&L has made a loss. As a result, you will receive a positive adjustment amount in your swap column equal to the difference between the old Bid and the new Ask.

You will receive (5050-5001) x 10 contracts = $490 AUD

Example 2: You sell 10 contracts

If your position is a Sell, it closes on the old Ask price of 5051 and reopens on the new Bid price of 5000. Because you are in a Sell and the new market price has decreased, your open trade P&L has made a gain. As a result, you will receive a negative adjustment amount in your swap column equal to the difference between the old Ask and the new Bid.

You will receive (5051-5000) x 10 contracts = -$510 AUD

Will my future position be closed when the contract expires?

Your futures contract position will not be closed when the future contract expires. It will remain open; the position will be rolled over and a cash adjustment will be applied to your account.

You can see expiry dates for all CFD products directly on our website here.