Futures roll cost calculator: front month versus next month in ticks and dollars
Rolling a futures trade means two orders and a price gap. Enter both months and see the cost in ticks and dollars.
How it works: a futures contract ends on a date. To stay in the trade, you close the front month and open the next one. That is a roll. The two months trade at different prices. The gap is the spread. This page counts the spread in ticks. A tick is the smallest price step. It then multiplies ticks by the dollars per tick. A long roll sells the front and buys the next, so a higher next month costs you. A short roll buys the front and sells the next, so a higher next month pays you. Fees come from two trades for each contract.
The roll is a real trade
Rolling feels like keeping the same position. It is two orders. You pay the spread and the fees. If the next month is higher, the market is in contango. If it is lower, it is in backwardation. Both are explained in contango and backwardation. The step itself is in contract rollover.
Ticks first, dollars second
A price gap of 12.5 sounds small. At 0.25 a tick it is 50 ticks. At $12.50 a tick it is $625 for one contract. Your numbers decide. Use the futures tick value calculator to check a contract. Pip, point and tick sorts out the words.
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