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How do I roll over Gold (GC) futures contracts?

In Cornèrtrader’s platforms (Cornèrtrader and Cornèrtrader web), “futures spreads orders” allow you to roll-over your futures’ expiring maturity to the next one without any legging risk, with lower spread cost, often with better liquidity and no spread risk.

The following example shows step-by-step how to roll over a short position in Gold (GC) futures in the downloadable Cornèrtrader platform:

1) Go to "Open Positions";


2) You are long 10 lots Gold Oct 2015 futures contracts;


3) Hover the mouse over "Notice Date" and notice that the position will be closed no later than one trading day prior to notice date, unless you close it yourself (possibly by rolling over into the next month);

 

4) Right click on the position;


5) Select "Futures Spreads Orders". The ticket will load with the correct number of lots in the most relevant spread: the contract of the position combined with the first following contract. You should always check that you are trading the right spread;


6) Check that the number of lots is correct;


7) Since you are long GCV5 Gold - Oct 2015, you need to "sell the spread" - so switch to "sell";


8) Order type: generally, to avoid the risk of poor execution prices, it's recommended that you place limit orders;


9) Price: the platform will suggest a passive limit price. If you change it to match the quoted bid price of the sprea;, most likely you will get instant execution when selling the spread. In the example below the limit is being placed at the current bid price of -1.0;


10) Please double check in the "legs" section of the trade ticket that you are executing the right trade - in this case: sell the GCV5 Gold - Oct 2015 and buy the GCZ5 Gold - Dec 2015 contract. (It is very important to double check, since some other spreads are quoted the other way around);


11) Execute the trade;

 

At this point, now that the rollover is executed:

12) You will get a trade confirmation for two trades - both the “sell” trade of GCZ5 (October) and the “buy” trade of GCV5 (December);


13) In your position list you will be square in the GCZ5 (October) and long 10 GCV5 (December) contracts.