Auto Renewal Every 30 Days
Every contract is valid for 30 calendar days, from the date the contract was opened. However, it is up to you to hold the contracts for a period you desire. Should you decide to hold the contract for a period longer than 30 days, the system will roll over the position automatically. All your contracts will be closed on the 30th day closing prices and re-opened at that same price, incurring no additional cost to you. During the renewal process, all unrealised Profit and Losses (PnL) and unrealised Finance Charges (FC) are realised. If the 30th day falls on a weekend, it will be roll-over on the following Monday.
Example of Contract Renewal Process
Jasvind has a 5,000 contract short position in Stock A, which he opened at $3.00. It has been 30 days and he is still holding onto Stock A. However, he is not prepared to close his position just yet. Hence, at the end of the 30th market trading day, the system closes Jasvind’s contracts at $2.50 and re-opens them at $2.50. In this process, realised profit was:
Realised PnL = ($3.00-$2.50)*5,000 = S$2,500.
He will also be charged finance charges for the 30 days, however, due to the complexity of finance charges calculation, we will not illustrate it here.
Basics to CFD Trading
