Futures contracts- do I need to close at the end of the contract?

Hi guys
I have a newbie futures contract related question. I have a position with #CLU2 at 87.90. From my understanding #CLU2 expires end of this month and I need to close my position before that. If I want to "rollover" to #CLV2 does that mean I won't be able to get it at the same price of 87.90? and need to rebuy #CLV2 at a higher price? (if the price is higher that is)

when I search the internet about "rollover" I'm not sure if the contracts automatically rollover or the whole "rollover" means closing expiring contract and then rebuying new contract at whatever future price.

If someone could explain this or point me to the right direction would be great!
thanks

Call your broker and ask him to get you out immediately! Don't go searching for answers. Once your out open a demo with the same platform and test all you want on how to get in and out!

hi Split unit
My broker says that they will close the position for me but what I'm curious is that, is this how future trading is? Kinda like options?

If I think Crude will go higher by the end of the year I should buy a december contract and not CLU2? (my broker doesn't offer december contracts) and there is no way I can hold on to my price position long term like gold?

Dude, I am going to be extremely honest here and you can hate me for it, I've been trading for 6 years now and I don't know if crude will be higher by December, so what makes you so sure? If I had to make an educated guess I would say that it would probably go up, but there's so much more to trading or investing then just knowing the direction of crude come December. You failed to know how to close your trade and you think you can out guess the sharpest minds in the world by going long crude from now to December? Dude you will seriously get a "margin call". Your playing suicidal here and the markets won't feel sorry for you, it will punish you without mercy.

I whole heartily advice you to learn more about trading/investing until you should commit capital and when you do commit it should be as little as possible until your consistently profitable. This isn't an easy business, I can point you in the right direction but that's all I can do. This is an incredibly complex business where everyone losses at the beginning. I am trying to reduce the initial pain.

As for your question on futures, technically speaking, futures are options where you have a right but not an obligation to assume delivery of what ever you are trading. But, from a trading standpoint futures differ from trading in their mechanics. In short, they are NOT the same, I don't trade futures, never have and probably never will. I trade equities and options that's my game. I strongly suggest you find yourself good futures mentors online before you do something that you would regret.

I like your attitude though, curiosity is what makes traders move from big losers to small losers to break-even traders to small winners to big winners to legendary traders. Keep asking, keep asking and keep asking! Its the only way to move from one level to the other. Goodluck!

thank you for the advise, i'm not blindly going at it but a reality check you gave me is much needed indeed and I thank you.

So it's like options is a confirmation of what I was curious about. shame I can't just long this longer.

My analysis is the weekly chart of oil plus the whole yada about weak dollar speculation. EU and Gold is reacting to that although EU is carving out a possible double top, we'll see. Another "indicator" is the AU cause it's reaching the upper resistant line of around 1.0680ish area and I think dollar strength is gonna depend on how the AU reacts at that line. So I'm thinking of holding crude until AU gets near that upper limit.

Check the CME site to see if the contract is a physical or cash settlement. There should be no reason why you can't trade the back month contracts. The only drawback is that they are less liquid than the front month resulting in a wider bid/ask spread.

All the best m8! I was just trying to help. Options are much better then futures to me. Because the downside to an option is always known, unlike futures that have an unknown downside. If your interested, I can help you find good option websites.

Never ever wait for your broker to close a position.
Commissions are not much nowadays.
The Sep crude contract terminates about the 20th of August.
But the volume dries up before that.
Close your Sep contract when this happens, it will be several days before rollover.
Check the NYMEX website - look for things like "First Notice Day" and "Last Trading Day". These are days you should know.
There is also such a thing as delivery.
You do not want that to happen.
Betting on December is not trading. That is a long term gamble.
(Unless, you are an OPEC insider!)

Wish I was an OPEC insider! Shame I can't play this long term. Even if things are bullish the expiration forces me to trade again and we all know what happens when we get the timing wrong

Thank you for all the info, "trade to close" is the 16th. Already closed half and planning to close the rest next week.

Look into ETFs for long term.
I think one is OIH (not sure).

if you need to close the contract it is not necessary to end it.......

closed all my CLU2 a day early and missed the $2 pop, hopefully it'll consolidate more and not fly away

does anyone know a broker where I can trade later contracts?
2013 contracts seem to have the most volume.
http://www.barchart.com/commodityfut.../CL?search=CL*