Forex Rollovers

At the end of each trading day, dbFX will automatically rollover all positions for you unless you instruct us otherwise by 4 pm London time on the scheduled settlement date of the applicable trade. Once you execute a trade, you may leave it open as long as desired and it will automatically be rolled over to the current spot value date. Credit and debit for the rollover interest will be posted to your account on a daily basis, and displayed in the forex trading platform and in your reports.

What is Rollover?

In the FX market, currency trades typically settle 2 business days after the trade date. The settlement date is referred to as the "value date". If you wish to hold a trade open until the next trading date, you must execute a rollover trade with your bank or forex 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 interest rate differential for the 2 currencies involved in the FX trade. As indicated above, we will rollover your positions unless you instruct us otherwise by 4 pm London time on the scheduled settlement date of the trade.

What are the Daily Rollover Timing and Rates?

All positions held after 4pm London time are subject to rollover, as this is considered the end of the international currency trading day. Positions held after this time are subject to rollover and funds are automatically subtracted from or added to your account.

For positions that are open on Wednesday and held overnight, the amount added or subtracted to an account as a result of rolling over a position tends to be around 3 times the usual amount. This reflects the fact that trades do not typically settle during the weekend period.

For more information, please access the monthly rollover schedule.

Where Can I View the Daily Rollover Rates?

You can view the daily interest credit or debit amounts for each of the currency pairs within the dbFX trading platform. Access the Simple Dealing Rates tab of the Advanced Dealing Rates window to view the amount that will be paid or earned on each lot.

Column "RollS" displays the amount that will be credited or debited to the account balance for each lot that is a short position in the given currency. Column "RollB" shows the amount that will be credited or debited to the account balance for each lot that is a long position in the given currency. Interest is displayed in the base currency of your account, regardless of what currency pair you are holding.

How is Rollover Calculated?

Rollover is calculated as follows:

Daily Rollover Interest = Number of lots * Base currency rate * Interest rate differential between the base and quote currency (Base currency interest rate – Quote currency interest rate) / 365

This is illustrated in the following example (please note that the values used in these examples are for indicative purposes only):

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 * (-0.0175) / 360 = -63.03 USD The roll over of the trade will result in a charge of $63.03 or $6.30 for each lot.