When it comes to trading in crude oil, one of the most important things to keep in mind is the expiry date of the contract you`re working with. In the case of the WTI crude oil June contract, that expiry date is fast approaching.
The WTI crude oil June contract is set to expire on May 19th, 2021. This means that anyone holding a position in this contract will need to either sell or roll over their position to a new contract before this date. Failure to do so could result in unexpected losses or other complications.
For those unfamiliar with crude oil trading, a futures contract is essentially an agreement to buy or sell a certain amount of oil at a specific point in the future. The expiry date is the point at which this agreement comes to an end, and any positions held in that contract must be resolved.
There are a few different options for what to do with a position in an expiring crude oil contract. One of the simplest is to simply sell the position before expiry, either to take a profit or minimize losses. This approach is typically used by traders who are looking for short-term gains or are not interested in holding positions for an extended period of time.
Another option is to roll over the position to a new contract. This involves closing out the current position and opening a new one in a different contract with a later expiry date. This approach can be useful for traders who want to maintain exposure to the market for a longer period of time, or who believe that the market will continue to move in a particular direction.
Whatever approach you choose, it`s important to be aware of the expiry date of any crude oil contract you`re working with. Failure to do so can lead to unexpected losses or other complications. With the WTI crude oil June contract expiry date rapidly approaching, now is the time to take action if you`re holding positions in this contract.