A swap, also known as “rollover fee”, is charged when you keep a position open overnight. A swap is the interest rate differential between the two currencies of the pair you are trading. If you trade Forex or CFDs on a "spot" basis, trades settle either one or two business days from inception, as per market convention. The settlement date is referred to as the value date.
Fxpesa offers "rolling spot" forex. This means we don't arrange physical delivery of currencies/precious metals, hence all positions left open at 17:00 New York time will be rolled over to a new value date. As a result, positions are subject to a swap charge or credit as specified in the table below.
For Forex, when you roll an open position from Wednesday to Thursday on trade date basis, Monday of the following week becomes the new value date, not Saturday. Therefore, the rollover charge on a Wednesday evening will be three times the value indicated in the table.
For CFDs on a "spot" basis, when you roll an open position on Friday, Monday of the following week becomes the new value date, not Saturday. Therefore, the rollover charge on a Friday evening will be three times the value indicated in the table.
The financing for your CFD trade is referred to as ‘rollover.' This is the interest paid (or received) depending on the size and direction of the position and for holding a position at 17:00 New York time .For Index CFDs, any dividend adjustments are included in the rollover amount as well.
