MadaTrader Rollover / Swap (Energy)

The Oil contracts UK Brent (Oil) & US WTI are based on the front month futures contracts on the exchange, so at present we are following the August 08 contracts, every month the Futures contracts expire and the next month becomes the front month, we simply roll our contract in line with this at no cost.

For example, if a customer was Long 1,000bbls WTI @ $135.00 when our benchmark WTI July 08 contract rolled to August, there was a $1.16 positive differential, we will simply cash adjust customers position in accordance to this with no charge to the client for doing this, so then the customers position will then be based on the August WTI contract, there is always zero impact to the customers P&L as a result of this procedure.

We roll both Brent & WTI contracts at the same time.