Overnights

Services

Overnight Funding Rates

TradeFX's Overnight Funding Rates are amongst the most competitive in the industry. At TradeFX we recognise the importance of long-term end of day trading strategies in the FX market and advantageous roll-over rates. Overnight funding rates come from the daily process of rollover, in order to adjust any existing exposure to the new trading day. The process is also known as position roll, carry or overnight swap. It is needed to avoid full cash delivery and receipt of the currencies traded. At 21:00 GMT or 22:00 GMT, depending on the season, the end-of-day settlement process is done. For each open position a pair of rollover trades will be booked, where existing positions are closed for the past trading day at the settlement price and simultaneously re-opened for the new trading day at the settlement price +/- the applicable overnight adjustment. Overnight swap rates change with changes in the interest rate differentials of the two currencies involved. However, note that TradeFX’s overnight rates are based on interbank market overnight swaps.

For MT4 clients, the overnight funding charge shall be shown in the Swap column of the Order Terminal. For non MT4 clients, the effect of overnights shall be applied by way of adjustment to the current market price of any open positions at the official settlement time on or about 10pm GM.

Minimum margin requirement

Minimum margin levels are set to protect you from the risk of loss in excess of your equity and TradeFX’s associated liquidity position as follows:

  • An individual self-trade account, a minimum Equity of £200.00 is required.
  • For accounts with different base currency the minimum amount of equity is calculated at the exchange rate as of the latest settlement.
  • All open positions may be closed and the account blocked if the Equity reaches below the minimum margin requirement.

The minimum margin required to open a position depends on the desired leverage, currency pair and current market prices. If equity for a self-trade account falls below GBP500.00 or equivalent in foreign currency, the account may be automatically blocked by the trading risk management system.

Margin call and margin cut

Margin Call means a situation where the margin requirements do not allow you to increase exposure on your account. You may only execute trades to reduce exposure, by closing or hedging the existing net positions. Despite the margin call level being reached, the positions will not be closed automatically. The automated system then cancels all placed bid/offer orders that can increase the exposure.

Margin cut or cut-off level occurs if the use of leverage reaches or exceeds 200%, TradeFX has the right (but not the obligation) to fully or partially reduce your exposure by closing existing positions and/or by opening new positions in the opposite direction. In the normal course, the system automatically reduces exposure so that the use of leverage is brought down to approximately 100%. However, you can select to fully close all open positions in case of a margin cut.