Forex positions held until their Value Date, and Interest on Unrealised Profit/Loss
Tom/Next rollover
Time of rollover
Open Spot Forex positions held at the end of a Trading Day at 17:00 New York local time will be rolled over to a new Value Date on a Tom/Next basis immediately after the change of trading day, approximately at 03:00 CET*.
*Currencies subject to special market conditions will be rolled over to a new Value Date on a Tom/Next basis approximately at 10:00 CET.
The Tom/Next credit/debit
As part of the Tom/Next rollover operation, FX positions are subject to a swap charge or credit. The calculated swap charge or credit are referred to as “Swap Point” and are added to/deducted from each FX position’s original traded rate.
The Swap Points are calculated as follows:
A proprietary Tom/Next swap rate is calculated based on a number of factors, including the interest rate* differential between the traded currencies and a Tom/Next swap feed from a Tier-1 bank. The relevant mark-up/down applicable to the client relationship is subsequently added/subtracted. The final rate is used to adjust the original traded rate.
* = Daily market overnight interest rates are used.
Interest on unrealised profit and loss:
Any unrealised profit or loss on the position being rolled is subject to an interest credit or debit.
Calculation of profit or loss:
The unrealised profit and loss is calculated as the difference between original trade rate (possibly corrected for previous Tom/Next rollovers) and the rate of the traded currency cross at 17:00 New York local time.
* For currencies subject to special market conditions the rate of the traded currency cross at 08:15 CET will be applied.
Applicable rate:
The rate is calculated based on daily market overnight interest rates plus/minus the mark-up/down applicable to the client relationship. The final rate is used to adjust the original traded rate.
Total Tom/Next overnight charge:
The total Tom/Next overnight credit/debit is the sum of the two above final rates.
Rollover date: