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Инвестиционен посредник в България с най-висок рейтинг за 2017 г.
Инвестиционен посредник в България с най-висок рейтинг за 2017 г.
Lesson

Overnight Positions

What is a "Rollover" and how is it calculated?

Rollover is the fee which is based on the swap rate for the underlying currency pair, and is accrued or charged at midnight if you have an open position which has to be transferred to the next day.

Please note that the swap points can be positive or negative in value. In the first instance, the rollover amount is added to your account, while in the second case it is deducted (withheld).

The amount you will pay or receive for an open position depends on the currency pair, since the CFD transaction with any currency pair is a purchase of one currency and a sale of the other.

Rollover = (Swap rate/10,000) × Position × Number of days

When JPY is included in the currency pair:

Rollover = (Swap rate/100) × Position × Number of days

In this way, the sum is in the second currency in the currency pair. If the account is in a currency different to the second currency in the pair, the sum will be recalculated in the currency of the account using the corresponding price of the currency pair at the end of the business day.

Example: You enter into a Buy trade for 1 CFD on EUR/USD (1000 units, or 1 lot in Delta Trading; 0.01 lot in MetaTrader 4). This means that you are buying 1000 EUR, and selling the equivalent in USD. This is called a "long" position. Conversely, if you enter into a Sell trade for 1000 EUR/USD, means you are selling 1000 EUR and buying its equivalent in USD. This is called a "short" position.

Should you decide to hold at long position of 1000 EUR/USD (1 CFD) for the next business day, you receive interest on the 1000 EUR you bought, while you pay interest on the USD equivalent you sold.

Should you decide to hold short position of 1000 EUR/USD (1 CFD) for the next business day, you receive interest on the equivalent in USD you bought, while you pay interest on the 1000 EUR you sold.

Interest rates are compliant with the best practices of the global financial institutions.

If the interest rate on the currency you bought exceeds that of the one you sold, you will receive the difference (the rollover amount).

Conversely, if the interest rate on the currency you bought is lower than that of the one you sold, you owe the corresponding difference.

The rollover amount is accrued on the end position which is transferred from the previous day.

Please note that trades in CFDs on Currency Pairs are executed with a spot value date (T+2 business days), i.e.:

  • The spot value date for a position opened on Monday (04.06.2018) is Wednesday (06.06.2018). Likewise, closing the same position on Tuesday (05.06.2018) will have a spot value date on Thursday (07.06.2018). Therefore, the rollover fee in your daily statement for Tuesday (05.06.2018) will appear as a charged amount for the transfer (rollover) of this position for a period of one business day (from 06.06.2018 to 07.06.2018).
  • The spot value date for a position opened on Wednesday (06.06.2018) is Friday (08.06.2018). Likewise, closing the same position on Thursday (07.06.2018) will have a spot value date on Monday (11.06.2018). Therefore, the rollover fee in your daily statement for Thursday (07.06.2018) will appear as a charged amount for the transfer (rollover) of this position for a period of three business days (from 07.06.2018 to 11.06.2018).
  • The spot value date for a position opened on Friday (08.06.2018) is Tuesday (12.06.2018). Likewise, closing the same position on Monday (11.06.2018) will have a spot value date on Wednesday (13.06.2018). Therefore, the rollover fee in your daily statement for Monday (11.06.2018) will appear as a charged amount for the transfer (rollover) of this position for a period of one business day (from 12.06.2018 to 13.06.2018).

Note: The information displayed on this page is for educational purposes only and is not a personal recommendation or investment advice. Any quotes of financial instruments in the examples are for reference purposes only and do not reflect the current market situation.