Saturday 23rd of September 2017

Overnight Policy

Overview


The overnight policy describes the daily process of rollover, in order to adjust any existing exposure to the new trading day. The process is also known as "position roll", "carry" or "overnight swap"; it is needed to avoid full cash delivery and receipt of the currencies traded. At 21:00 GMT or 22:00 GMT [depending on the season] the end-of-day settlement process is done.

For each open position a pair of rollover trades will be booked, where existing positions are closed for the past trading day at the settlement price and simultaneously re-opened for the new trading day at the settlement price +/- the applicable overnight adjustment in pips as seen in the table.

These trades are labeled as "rollover close" and "rollover open" respectively and can be viewed in portfolio and intraday statements. In addition clients can see the impact of the carry in the position report.

Institutional carry rates


Institutional carry rates shall be applied to accounts that satisfy the minimum monthly turnover criteria, currently set at USD 1 billion. Should a client’s trading volume reach the criteria during a month, the account shall be entitled to the institutional cost of carry rates for the following month. Regular cost of carry rates shall be applied to accounts that do not satisfy the institutional criteria. Carry rates published on the website are for informative purposes only and can be changed at any time.

For the main countries, the calculation of overnight swap prices is commonly based on the central bank reference rates. Overnight swap rates change with changes in the interest rate differentials of the two currencies involved. However, it must be stressed that Dukascopy Bank uses its own rates which are based on interbank market overnight swaps.

Swap-free-accounts


Swap-free-accounts are trading accounts in adherence with Islamic religious principles. The overnight which is charged or paid as the price difference between rollover close and open trades is not applied to swap-free-accounts. Both rollover trades are booked at the same price.

In addition to the standard volume commission an extra fee of USD 5 per 1 million USD for currencies and USD 7.5 per 1 million USD for precious metals is applicable to swap-free-accounts.

Why GI Partners

Offering some of the tightest spreads and lowest margins across the industry.

  • Providing you with competitive spreads
  • Help you make better-informed trading decisions
  • Excellent products and quality service
  • Providing trading mobile application download
  • Client funds are held in segregated accounts