Definition
Rollover, also known as Swap or Overnight Fee, is an interest paid or earned as a result of holding a position open overnight on a Derivative. OpalX Rollover Policy is aimed to establish and maintain a fair fee across all the tradable securities and asset classes. Throughout most of the available securities, apart from Forex and Gold, the rollover fee constitutes of an internal interest fee plus or minus the rollover fee we gather from the counterparties we collaborate with for that respective security. For the remaining instruments, due to their volatility, the final fee also takes into account an internal market and risk analysis conducted by the company. Rollover fees are assessed on a continuous basis and amended when needed.
Rollover Calculation - Example
Account Base Currency: EUR
Security: USA100 (Nasdaq)
Position Size: 1 lot (1 Contract)
Side: Buy (Long)
Currency Rate: EURUSD
Rollover Calculation - Example
Account Base Currency: EUR
Security: USA100 (Nasdaq)
Position Size: 1 lot (1 Contract)
Side: Buy (Long)
Currency Rate: EURUSD
Rollover Fee Formula = Position Size * (Counterparty Fee * Internal Interest Fee) * Pip Value) / Currency Rate
Calculation: 1 * (-0.70 * 1.30) * 1.00 / 1.1610 = $-0.78Swap Free Trading
OpalX offers swap-free trading conditions on specific trading accounts for clients who observe Sharia law, however, several instruments may face Carry Charges after a position has been rolled over for sequential period of days.
Swap-free trading conditions are also available for clients who do not observe Sharia law, on specific trading accounts and specific instruments:
AUDNZD, AUDUSD, EURCHF, EURUSD, GBPJPY, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY, USOIL, AUDCHF, AUDJPY, EURAUD, EURCAD, EURGBP, EURJPY, EURNZD, GBPCHF, GBPNZD, NZDJPY, NZDCAD, XAUUSD, UKOIL
* Trading mostly within the day and maintaining a low number of overnight positions can be a common approach.
* Trading history on the above mentioned instruments will be monitored to ensure correct use of the swap-free conditions. The Company reserves the right to revoke swap-free status at its absolute discretion.
Shares and Corporate Actions
Positions on shares are subject to an overnight financing credit/debit charge. Please note that when traders open and close a position within the same trading day, they are not subject to overnight financing. Share CFD rollover fees are derived from the underlying value of the contract times the interbank LIBOR rates, +/- internal interest fees.The calculation is based upon 365 days of trading for UK shares and 360 for all other offered shares.
Shares Calculation - Example
Share Rollover Simulation
Account Base Currency: USD
Account Quote Currency: USD
Security: FaceBook
Position Size: 1 lot = Contract Size 100 Shares
Share Rollover Formula: (Notional value * (LIBOR +/- Internal Interest Fee))/360)
Calculation: (20,000 * (2.24% + 2.15% ) ) / 360 = -$2.44)
These overnight charges can be adjusted for corporate actions such as cash dividends pay outs, exchange offers, dividend options, bonus issues etc. For example, if a share CFD traded by the client and held overnight pays out dividend on that date (goes ex-dividend date), then the client with a long position will be entitled to receive the dividend as an adjustment in the swap. In the case that the client holds a short position on the share CFD, this position will be charged the relevant dividend adjustment through the overnight swap. In this example the swap for long positions will be increased to reflect the dividend payment, and the swap for the short positions will be decreased respectively.
Rollover Charging Schedule
The beginning and end of the trading day is considered to be 00:00 by our servers. Any position left open at 00:00 (server time) is considered to be held overnight and is subject to rollover fees. A position opened at 00:01 (server time) is not subject to rollover until the next day, while a position opened at 23:59 (server time) is subject to rollover at 00:00 (server time).
A credit or debit for each position opened at 00:00 will appear in your account, it is applied directly to the trade via the swap field and reflects
automatically into your account balance.
Server Times
Server Times
- GMT+3: Last Sunday of March to Last Sunday of October
- GMT+2: Last Sunday of October to Last Sunday of March
Weekends and Public Holidays
Despite markets are mostly closed during weekend and local public holidays, interests remain applicable for positions held during those periods. To measure for this, weekend rollover fees are computed and applied for three days on Wednesdays, which makes a typical Wednesday rollover three times the amount. Please note that for indices instruments triple swap is applied on Friday instead.
Triple Swap - Example
Account Base Currency: USD
Security: GBPUSD
Position Size: 0.50 Lots (50,000)
Side: Sell (Short)
Currency Rate: USD
Triple Rollover Fee Formula = (Position Size * (Counterparty Fee * Internal Interest Fee) * Pip Value) / Currency Rate) * 3
Calculation: (0.50 * (0.45 * 0.70) * 10.00 / 1) * 3 = $4,71
As per the above, rollover fees are also applied as usual for all instruments during public holidays no matter whether the instrument is tradable or not during that day.