Understanding Futures Rollovers at TEFS

At TEFS, several trading instruments are offered as CFDs based on futures contracts. This means that while traders are not trading the actual futures contract directly, the pricing is derived from the underlying futures market — including its expiration dates and contract rollovers.
Understanding how futures expiries and rollovers work is important for every trader holding positions over longer periods.

📌 What Is a Futures Contract?

A futures contract is a financial agreement to buy or sell an asset at a future date for a predetermined price.
Futures contracts are commonly used for:

• 📈 Stock indices
• 🛢️ Oil and commodities
• 💵 Currency indices
• 🌍 Global markets

Unlike spot markets, futures contracts have a fixed expiration date.
Once a contract reaches expiration, trading activity moves into the next available contract month.

⏳ What Is an Expiry Date?

An expiry date is the date when a futures contract expires and is replaced by a newer contract.
Since TEFS instruments are based on futures pricing, instruments with futures backing also have periodic expiries.
📋 Examples of Expiry Periods at TEFS

 👉 Full instrument list: Explore the financial instruments offered by TEFS

🔄 What Happens During a Rollover?

If a trader still has an open position when a futures-based CFD reaches expiry, TEFS will automatically roll the position into the next contract.

✅ No action is required from the trader
✅ No rollover fee is charged by TEFS
✅ The position remains open automatically

However, traders should understand an important detail:

⚠️ Contract Prices Can Change

The price of the new futures contract is often different from the old expiring contract.

Because of this difference, a credit or debit adjustment is applied to ensure traders are not unfairly affected by the price gap between contracts.

This adjustment depends on:

• 📊 The difference between old and new contract prices
• 📦 Position size (lots)
• 📈 Whether the position is long or short

🛢️ Example: USOIL Rollover

Let’s say:

• The old USOIL contract expires at 95
• The new USOIL contract opens at 91

This creates a 4-point difference between contracts.

📈 If the Trader Is LONG
A long position would appear to lose 4 points artificially because the new contract price is lower.
To compensate fairly:

✅ TEFS will credit the trader for the price difference.
This ensures the trader does not suffer an artificial loss caused only by the contract rollover.

📉 If the Trader Is SHORT
A short position would appear to gain 4 points artificially because the new contract price is lower.
To balance this fairly:

⚠️ TEFS will debit the trader for the price difference.
This removes the artificial profit created purely by the contract switch.

🎯 Why Are Adjustments Necessary?

Rollover adjustments exist to keep trading fair and neutral.

Without these adjustments:

• Long traders could suffer artificial losses
• Short traders could receive artificial profits
• Account balances would become distorted by contract changes rather than real market movement

The rollover process ensures that traders continue holding their positions without unfair gains or losses caused solely by futures expiration.

✅ Final Thoughts

Futures-based CFDs are an important part of modern trading markets, especially for indices, oil, and commodity products.

Because futures contracts expire periodically, rollovers are a normal market process. At TEFS, open positions are automatically rolled into the next contract at no additional cost, while appropriate credit or debit adjustments are applied to maintain fair pricing continuity.

Understanding how expiries and rollovers work helps traders manage positions more effectively and avoid surprises when holding trades over longer periods.

Want to read more about TEFS?

What is a Prop Firm?
TEFS Rules for Instant Funding and Challenges
Understanding Trading Order Types
Max Drawdown vs. Max Daily Drawdown in Prop Trading
What is a Prop Challenge?
TEFS Payouts and Profit Split Explained
Navigating the Global Market: Your Guide to Trading Instruments and Server Time

🚀 Ready to Trade Smarter and Get Rewarded?

If you're serious about becoming a professional trader, it's time to trade with purpose. Join TEFS today and experience a better way to train, grow, and profit—with no shortcuts, no gimmicks, and no unnecessary risk.

👉 Explore TEFS now and start your journey to real trading success.