Rollover Charges / Credits

Rollover takes place when the settlement of a trade is rolled forward to the next value date with the cost of this process based on the interest rate differential between the two currencies. On the DealStation™ platform, rollover applies to all open positions at 3:00 PM (EST) - the end of the DealStation™ trading day. Rollover charges / credits are shown in the 'Rollover' column as a US dollar amount per 1 unit. A negative number represents a charge and a positive number shows a rollover credit. These figures are usually updated a few hours prior to 3:00 PM (EST).

Clients will pay rollover charges if they sell the currency with the higher interest rate in the pair and earn rollover credits if they buy the currency with the higher interest rate in the pair. For example, if the British pound has a higher interest rate than the US dollar, a client will be paying rollover charges on short GPB/USD positions and earning rollover credits on long GBP/USD positions. The amount of Rollover charges/credits is determined by the difference between US interest rates and the interest rates in the corresponding country. The greater the interest rate differential between the two currencies, the higher the rollover charge/credit will be.

The spot forex market is traded on a 2-business day value date. For trades executed on Monday, the value day, or day of delivery, is Wednesday. However, if a position is opened on Monday and held until Tuesday, then the next value day will be that Thursday.

For positions that are held after 3pm on a Wednesday, the value delivery date is the following Monday, provided that there are no holidays in any of the participating markets before that Monday. This implies two extra days of rollover charges / credits when the delivery is rolled over the weekend when banks are closed and the actual delivery of currency cannot take place. Thus, positions that remain open on the DealStation™ at 3pm on Wednesday incur a triple amount of rollover charges / credits.

For positions rolled over at 3pm on Friday, the value day moves from Tuesday to Wednesday, implying a single day rollover charge / credit.

It is important to understand that every opened position has a value day. Whenever the deal is not closed on the same trading day, the trade is subject to rollover.