Friday 16 January 2015

Indicator Y Long 2374 - The Rollover 25 Points

This is just to assume that there is a 25 points different for the rollover due to the change of new contract month on 3rd active month of cpo futures trading on Bursa Malaysia Derivatives.

As for long position, it is theoretically having advantage now with the discount of 25 points in rollover to new contract month which is meant that the long 2374 is now 2349. Cheaper price for buyers.

As for short position, it will be the other way round which the short will have a bad filled price since it is getting lower price due to the rollover.

The important issue here is the stop and reverse trade signal that will be much affected by the rollover of 25 points different, and readers traders need to think deeply about.

We will let readers traders do their own soul searching and we will explain in more details when the next stop and reverse trade signal is triggered.