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How do I roll over WTI Crude Oil (CL) futures contracts?
In Cornèrtrader’s platforms (tablet and mobile, Cornèrtrader, and Cornèrtrader web), “Futures Spreads Orders” allows you to roll over your futures expiring maturity to the next one without legging risk, with lower spread cost, and often with better liquidity and no spread risk.
The following example shows step-by-step how to roll over a short position in Light Sweet Crude Oil (WTI) futures contracts ("CL") in the downloadable Cornèrtrader platform:
1) Go to "Open Positions";
2) You are long 10 lots Light Sweet Crude Oil (WTI) - Jul 2015 futures contracts;
3) Right click on the position;
4) Select "Futures Spreads Orders". The ticket will load with the correct number of lots (10 in this example) in the most relevant spread: the contract of the position combined with the first following contract – which, in this example, is the Light Sweet Crude Oil (WTI) August 2015 contract. You should always check that you are trading the right spread;
5) Double check that the number of lots is correct;
6) Since you are long Light Sweet Crude Oil (WTI) - July 2015, you need to "sell the spread" - so switch to "Sell";
7) Order type: generally, to avoid the risk of poor execution prices, it's recommended that you place limit orders;
8) Price: the platform will suggest a passive limit price. If you change it to match the quoted bid price of the spread, most likely you will get instant execution when selling the spread. In the above image, the limit is being placed at the current bid price of -0.32;
9) Please double check in the "legs" section of the trade ticket that you are executing the right trade - in this case: sell the CLN5 WTI - Jul 2015 and buy the CLQ5 WTI - Aug 2015 contract. (It is very important to double check, since some other spreads are quoted the other way around);
10) Execute the trade.
At this point, now that the rollover has been executed:
11) You will get a trade confirmation for two trades - both the “sell” trade of 10 July and the “buy” trade of 10 August contracts;
12) In your position list you will be square in the July contract and long 10 August contracts.