Unlike Index CFD's, which reflect the underlying cash market and are subject to overnight financing, Index Future CFD’s are not. They expire in the market place on a certain day and are not subject to day to day financing. AxiTrader will switch from using the front month price feed into the next month price feed at the close of business on the day before the official market switches its front month feed before the market expires. This will not result in a cost or a benefit as your account will be cash adjusted to make allowance for the difference in price between the two months.
All information given is for information purposes only. It has been compiled as accurately as possible but is subject to change without notice.
A clients open position is long 10 Australia 200 Futures CFD’s at 5525 Price at close on day before the front month changes is 5570 (making the client a profit of AUD 450) Next contract price is 5600 (ie plus 30 over current month) Price feed is changed to new contract. A/C position now showing profit of AUD 750, but the account will be debited AUD 300. The net financial effect is zero.
