Rollover at PFH MARKETS

Competitive & transparent swap rates. 3-day rollover strategy.

Competitive Swap rates

Transparent Swap Rates

3-day rollover strategy

Following current
interest rates

Rollover – What you need to know

Rollover refers to extending the settlement date by which an open position must be executed.

While in currency trading the rollover is two business days, in margin trading open positions must be closed at 22:00 GMT every day and re-opened on the next trading day.

Rollover is agreed on through a swap contract which comes at a cost or gain for traders. PFH MARKETS does not close and re-open positions but debits/credits trading accounts for positions held open overnight, depending on the current interest rates (LIBOR/LIBID with added mark-up).

Rollover at PFH MARKETS

Unlike the usual standard practice of a two-day rollover, PFH MARKETS applies a 3-day rollover strategy for positions held open over the weekend or overnight.

Even though the markets are closed on Saturdays and Sundays, banks charge interest on positions held open over the weekend. However, PFH MARKETS levels this time gap with a 3-day rollover, which takes place on Wednesdays, and our rollover rates are adjusted to the current market conditions.

Our rollover strategy also includes the fact that we do not close and re-open positions, but instead debit/credit our clients’ trading accounts with rollover interest in line with the prevailing interest rates.

22:00 GMT is the standard time that marks the beginning and the end of a currency trading day.

How Rollover Is Calculated

Depending on the prevailing interest rates, rollover may either mean a cost or a gain to online investors who keep positions open overnight.

Because currencies are traded in pairs (i.e. base currency vs quoted currency), traders borrow money to buy another currency. This means that interest is paid on the borrowed currency and earned on the bought currency. Rollover interest is the net result of this.

Rollover interest can be calculated with 3 details at hand: the short-term interest rates on both currencies in the currency pair, the current exchange rate of the currency pair, the quantity of the currency pair that was purchased.