What Is Rollover

The delivery day can be extended to the next trading day in the settlement, which is called rollover.
The parties of a FX trade (interbank market) normally execute at the current exchange rate in the FX market and take delivery two days after the trading day. But for positions in FX margin trading, the actual delivery day can be infinitely extended through rollover. In other words, clients can hold their positions for a long term and don’t need to worry about the delivery. This is also available for spot gold CFD and spot silver CFD. Rollover will generate no commission charge.

Swap Interest

Swap interest is the interest accrued from interest rate difference between two currencies traded during rollover. Swap means exchange. What exchanged, in this context, is interest rate of different countries. Because of different economic situations, different countries have different interest rates. If one buys a currency with a higher interest rate and sell a currency with a lower interest rate and holds the position to the next trading day, he/she can collect interest. On the contrary, if one sells a currency with a higher interest rate and buy a currency with a lower interest rate and holds the position to the next trading day, he/she will pay interest. For example, the interest rate of Australian Dollar is higher than the one of Japanese Yen. So when you buy AUD/JPY and hold the positions to the next trading day, you can collect the net interest, which is the difference between you collect the interest of Australian Dollar and you pay the one of Japanese Yen. On the contrary, you will pay the interest. The FX swap interest is settled at the moment of market close.

Notes

  • In USD account, if minimum fluctuation value is in other currencies except US Dollar, it will be exchanged to dollar automatically at real-time rate by the system.
  • The items listed above may be adjusted and changed with the circumstances. Please take the actual situation as the criterion.
  • Please contact with our customer service department to inquire about the commission.
  • With sufficient funds, the maximum of an order placing is 500 lots and of positions in each account is 9999.

Interest

Spot CFD such as gold and silver accrues interest for rollover, while futures CFD such as crude oil, copper, soybean and wheat doesn’t.

Calculation Formula

Open Price×Contract Size×Buy/Sell Interest Rate/365×Lot(s)×Days

Example

Effective Date Product Contract Size Interest Rate(Buy) Interest Rate(Sell)
2022/09/22 Spot Gold (XAUUSD) 10 troy ounce -2.25% 0.25%
2022/09/22 Spot Silver(XAGUSD) 100 troy ounce -2.25% 0.25%

    Spot Gold CFD:

  • On Thursday (2022.9.22), sell and buy 1 lot spot gold CFD respectively at the real-time price of 1670.90/1671.40, the interest collected and paid at rollover are:
    Sell: 1670.90×10×(0.25%/365)×1×1=0.11 dollar
    Buy: 1671.40×10×(-2.25%/365)×1×1=-1.03 dollar

    Spot Silver CFD:

  • On Thursday (2022.9.22), sell and buy 1 lot spot silver CFD respectively at the real-time price of 19.610/19.660, the interest collected and paid at rollover are:
    Sell: 19.610×100×(0.25%/365)×1×1=0.01 dollar
    Buy: 19.660×100×(-2.25%/365)×1×1=-0.12 dollar

With the outstanding position of buying gold or silver at rollover, interest should be paid; While with the outstanding position of selling gold or silver at rollover, interest should be collected. (It may vary with market conditions.) Please refer to “View----Product Facts” in the trading platform for the latest interest rate.

Interest Days

The interest day is determined basing on the difference of delivery date between buying and selling instead of the difference of transaction date. The delivery is usually made within 2 days after the transaction. For example, with the outstanding positions at rollover from Wednesday to Thursday, the actual delivery date is respectively on Friday and next Monday, which is the reason that rollover on Wednesday needs to pay interest of 3 days. While with the outstanding positions at rollover from Friday to next Monday, the actual delivery date is respectively on next Tuesday and next Wednesday, which is the reason that rollover on Friday only needs to pay interest of 1 day.Usually, the interest day of a week from Monday to Friday is counted by 1day, 1day, 3days, 1day and 1day. But when it’s on Christmas Day or New Year’s Day, the rules of the interest day in a week may vary with the conditions.

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