WTI, Brent and natural gas: expiry and adjustments

The essentials

WTI, Brent and natural gas are distinct markets. A CFD can follow an expiring contract or use its own continuity mechanism. Changing the reference contract may produce adjustments, not free profit.

Understand the mechanism, not just the definition

For energy, check expiry, reference contract and transitions between contracts. An adjustment or rollover can change quoted price and generate a compensating entry under its rules. This is not automatically market profit or loss. Price history without those events can mislead.

Example and verification

Record symbol, reference contract, expiry or adjustment date, hours and size before holding. Check how changes are booked. Different charts can use different contracts without an incorrect price.

Worked case, step by step

A hypothetical reference contract ends at 70 while the next quotes 72. A continuous series may show a transition jump without establishing a gain of 2 per unit: inspect adjustments, closure, reopening and charges. Check the specific contract calendar and rules before holding through the event.

What to verify when applying this

Check funding, rollovers and closure. Oil alone is not a sufficient specification. Match exposure and period when comparing; another expiry's pricing does not describe your trade.

Practice: verify it in your environment

Learn by observing the process and keeping its data. Complete this practice in demo or using documentation, without sending real orders or adding capital for the exercise. Record differences between the example and your account specifications.

1. Find expiry, rollover calendar and symbol adjustment method.
2. Separate market moves and contract transitions in analysis.

Test your understanding

Try the question before revealing the answer. Justify the conclusion and its assumptions rather than memorizing a number.