Rolling over

Discussion in 'Financial Futures' started by J-S, Oct 31, 2005.

  1. J-S

    J-S

    I have a few basic questions about rolling over a futures position –
    Does the broker charge 2 commissions to rollover (1 to close, 1 to re-open) or just 1?
    How do you prevent adverse slippage between the 2 contracts when rolling over? - Is it possible for both orders to be executed simultaneously so that there is no adverse market movement? Are there any specific instructions you can give to your broker to prevent this, for example some kind of limit order?

    Thanks in advance for any thoughts
    J-S
     
  2. rolling over is best done in pit traded contracts
    if my memory serves me correctly
     
  3. J-S

    J-S

    Thanks seth,

    Is anyone able to elaborate further on my questions?

    Thanks in advance for any comments.
    J-S
     
  4. Doesn't it depend on the contract?

    As far as I understand it, for the S&P futures in the pits there is a spread contract you can trade. One commission and the spread is 5 cents.

    Electronically, using IB, I just create a combo and select future and calendar spread and select to buy the new contract and sell the old. When rollover time comes around, the spread is .05, but you get charged two commissions.

    I assume most contracts are similar to this.
     
  5. You can enter a calendar spread that will only execute if both legs match your criteria for what the spread should be. And, yes, you will pay a commission for each leg in most cases.