Rollovers
dbFX will automatically rollover all positions for you. Once you execute a trade you may hold the trade open as long as desired and the trade will automatically be rolled over to the current spot value date. Credit and debit for the rollover interest will be posted to your account daily. These credits and debits can be viewed in the Trading Station and your Reports.Background
In the foreign exchange market, currency trades typically settle two business days after the trade date. The settlement date is referred to as the "value date". If a client wishes to hold a trade open until the next trading date, he must execute a rollover trade with his bank or broker in order to keep the position open. A rollover is buying for one value date and simultaneously selling for another value date. The rollover price represents the difference between the interest rate for the two currencies involved in the trade (for example, EUR currently yields 3.50% and USD currently stands at 5.25%).Executing the daily rollover trade requires record-keeping and tracking the profit/loss of a new trade. In place of entering into a separate rollover trade, dbFX will automatically execute the daily roll over of all the positions that you have not closed out prior to 4pm London time.
Daily Rollover Timing and Rates
The dbFX Trading Station will automatically credit or debit the interest from the rollover to your account balance for positions held after 4PM London time. The interest will be shown in your account in the base currency of your account, regardless of what currency pair you are holding. Note all open trades at 4PM London time will be rolled over, even if the position is only open a few minutes. Exchange rates and interest rates used in the determination of the rollover credits and debits will change daily.Daily Rollovers on the dbFX Trading Station
You can view the daily interest credit or debit amounts for each currency within the dbFX Trading Station. To view the amount that will be paid or earned on each lot:- Go to the Advanced Dealing Rates window.
- Click on the tab called Simple Dealing Rates.
The RollB column displays the amount that will be credited or debited to the account balance for each lot that is a long position in the given currency.
Rollover Calendar
The RollB and RollS represent the credit or debit amounts for one day. In a normal week, with no holidays, the rollover on Wednesday will be for three business days and the credit or debit will be three times the amount shown on the dbFX Trading Station. Please click here to view a monthly calendar outlining the monthly rollover schedule for each business day.Rollover Examples
The following examples illustrate how the daily interest is calculated.Trade 1:
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Long 1,000,000 EURUSD @ 1.2967 = 1,296,700 USD EUR interest rate = 3.50% USD interest rate = 5.25% 3.50 – 5.25 = -1.75% 1,296,700* (-.0175) / 360 = -63.03 USD The roll over of the trade will result in a charge of $63.03 or $6.30 for each lot. |
Trade 2:
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Long 1,000,000 CADJPY @ 102.95 = 102,950,000 JPY CAD interest rate = 4.25% JPY interest rate = .25% 4.25 - .25 = 4% 102,950,000 *.04 / 360 = 11438.89 JPY 11438.89 JPY = 93.96 USD The roll over of the trade will result in a credit of $93.96 or $9.39 for each lot. |
Trade 3:
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Long 1,000,000 NZDUSD @ .6959 = 695,900 USD NZD interest rate = 7.25% USD interest rate = 5.25% 7.25 – 5.25 = 2% 695,900*.02 / 360 = 38.66 USD The roll over of the trade will result in a credit of $38.66 or $3.86 per lot. |
The values used in these examples are for indicative purposes only.
