Overnight Position
Overnight positions are subject to swap interest rates due to rollovers. For Forex stocks, both the position you hold (long or short) and the interest rate differential between the currency pairs you are trading will affect whether a positive swap or a negative swap applies. For equities and stock indexes, whether positive or negative applies depends on whether the position you hold is short or long.
Rollover swap rates apply only to physical stocks. There is no overnight fee for futures contracts with a due date.
Rollover Description
Rollover is the process of extending the settlement date of an open position (that is, the date on which the executed transaction must be closed). In the Forex market, all spot contracts must be settled after 2 business days. Settlement is the delivery of currency in kind.
However, in-kind delivery does not occur in margin trading. Therefore, all open positions must be closed daily at the end of the day (22:00 GMT) and reopened the next trading day. This will extend the settlement by another trading day. This method is called rollover.
Rollover is carried out by a swap agreement, and traders will have receivables and debts (profit and loss). ASIAN GATE will not close and reopen open positions and will debit or credit your trading account for positions held at night according to current interest rates.
ASIAN GATE Rollover Policy
ASIAN GATE is competitive with all positions opened after 22:00 GMT, the daily bank settlement deadline. The rollover interest rate is credited or credited to your trading account at the rate.
The market is closed on Saturdays and Sundays, so there will be no rollovers on weekends, but banks will calculate interest on positions held on weekends. To address this procedure in the Forex market, ASIAN GATE will apply a three-day rollover on Wednesday.
How to calculate rollover
FX and spot metal (gold and silver)Rollover for FX brand and spot metal position The interest rate is calculated based on the interest rate of the next two business days (the business day following the contract date and the business day following the next business day), including the commission of ASIAN GATE holding an overnight position. The rate for the next two business days is not determined by ASIAN GATE, but is determined by the interest rate difference between the currency pairs in which the position is opened.
Example
Assume the next 2 business days rate when trading USDJPY is
+ 0.5% for long positions
-1.5% for short positions
In this scenario, the United States Interest rates are higher than Japanese interest rates. Therefore, you will be charged a + 0.5%-ASIAN GATE fee for long overnight positions in this currency pair.
On the contrary, the calculation in the short position is -1.5% --ASIAN GATE fee.
More generally, the formula is as follows.
Number of trading lots X (+/- next 2 business days rate – ASIAN GATE Fee) *
Here +/- is determined by the rate difference between the two currencies of the target currency pair.
* The amount is calculated in currency points of the main currency.
Equities and Stock Indexes
The rollover rate for a position in a stock or stock index is determined by the interbank rate on which the stock or index is based (eg, for Australian listed stocks). ASIAN GATE fees will be added / deducted for each of the long and short positions (which will be the Australian interbank rate for short-term loans).