IB sent me this message. Dear Customer, Please be advised that specific future contracts are subject to the IBKR expiration/near-expiration risk policy. Your account U7454497 currently holds a position in one or more of the following products that are subject to the IBKR expiration/near-expiration risk policy: Symbol Cutoff Date Clearance Date ZB (US Treasury Bond) 20241127 20241127 These position(s) are subject to an automated liquidation if they are not closed out in accordance with the IBKR Closeout Schedule for commodities. As Cash and IRA accounts are restricted from holding foreign currencies, such products will follow the All Other Contracts liquidation schedule. Accounts eligible to hold foreign currencies will not be subject to the expiration/near-expiration risk policy on foreign currency products. I have a ZB future contract. I thought the contract closing day is 12/19/24. Why is the message date 11/27/24. How to keep the future position.
The volume and open interest is already moving from Dec to Mar. I have an open position in the same contract and my system will probably roll on Monday (it's automated). If you wait too long, there will be almost no volume left in the Dec contract and you'll have to pay more to roll / close it out. For those who want to take and make delivery, you hold until 12/19, but the volume will dry up long before that.
ZB (30 year US Treasury Bonds) have a First Notice Date defined as "The last business day of the month preceding the delivery month". For the Dec 2024 contract, this is 29 Nov 2024. IB don't want to deal with any physical deliveries/failed deliveries so they auto-close positions a couple of days earlier.
It means you don't know what the fuck you are doing when it comes to futures, because you are a n00b in them. Heed their warning. Roll it, dude.
Just roll it on Sunday or Monday. Or do it manual by buying the March selling the December in 2 transactions.
I want to sell December and buy March. But the spread is $200 minimum per contract. I have 4 contracts. This will make me lose $800
I have to agree with the above posted but I'll try to be a bit kinder: You need to learn more about how futures work. You don't "lose" anything by rolling a contract.
lol, i roll zn covered calls 3 times a week. futures are mark to market, losses and gains are eventually even out. you realize losses this month and hopefully will have unrealized gains in december, the tax bill is the same as you hold the contract indefinitely. if your position is underwater, there is no guarantee the price will come back on or before december 19, you may well book the losses now and enter at a lower price for march contract.