Commission for rolling over contracts?

Discussion in 'Index Futures' started by HotTip, Dec 18, 2009.

  1. HotTip


    I'm still a novice wrt futures, but can anyone out there tell me if I roll over an index future contract to the next expiry, do I get charged a new commission? Is that considered a sale followed by a purchase?

    Thanks for any insight!
  2. HotTip


    Looks like I might've found the answer to my own question:

    Will open futures contracts roll over automatically at expiration?
    Please note that futures contracts, by default, do not roll over at expiration. The TWS trading platform, however, does provide a feature referred to as the 'Automatic Futures Rollover Message' which, when activated, automatically displays a message on login eight days prior to expiration which allows one to select contracts for which the market data lines can be updated with the new front-month contracts. Note that this will only serve to update the market data line and will not execute a trade unless the accountholder acts to transmit an order. <B>Any orders transmitted for roll over purposes are subject to the standard commission and fee schedule. </B>

    The following steps are to be performed in order to activate this feature:

    1. Click the Configure wrench icon in the trading window

    2. In the left pane of Global Configuration, select General;

    3. In the right pane, check Auto future rollover;

    To view eligible futures rollovers within TWS, select Futures Rollover from the Ticker menu and then check all contracts that you want automatically updated to the new front month.

    Also note that with the exception of certain currency futures contracts, IB does not allow for the actual physical delivery of underlying commodities. Contracts which settle by physical delivery must be rolled over or closed out prior to a close-out deadline or face forced liquidation by IB. Please refer to the website under the Trading and then Delivery, Exercise & Actions menu options for additional details as this deadline will vary by product.