Rollover rates for positions on forex instruments and spot metals are charged the tomorrow-next day (i.e. tomorrow, and the next day) rate, including the Fulbright Securities Limited mark-up for holding positions overnight. Tom-next rates are not determined by Fulbright Securities Limited but are derived from the interest rate differential between the two currencies that a position was taken in.
Assuming that you trade in USDJPY and that the tom-next rates are as follows:
+0.5% for a long position
-1.5% for a short position
In this scenario, the interest rates in the USA are higher than in Japan. A long position in the currency pair held open overnight would receive +0.5% - the Fulbright Securities Limited mark-up.
Conversely, for a short position the calculation is -1.5% - the Fulbright Securities Limited mark-up.
More generally, the calculation is as follows:
Trade size X (+/- tom-next rate – the Fulbright Securities Limited mark-up)*
Here the +/- depends on rate differentials between the two currencies in a given pair.
*The amount is translated to currency points of the quote currency.
Rollover rates for positions on stock and stock indices are determined by the underlying interbank rate of the stock or index (for example, for an Australian-listed security, that would be the interest rate charged between Australian banks for short-term loans), plus/minus the Fulbright Securities Limited mark-up on long and short positions respectively.
Assuming that you trade in Unilever (a UK-listed stock) and that the short-term interbank rate in the UK is 1.5% p.a., for a long position held open overnight, the calculation is as follows:
-1.5%/365 — the Fulbright Securities Limited daily mark-up
Conversely, the calculation for a short position is +1.5%/365 – the Fulbright Securities Limited daily mark-up.
More generally, the calculation is as follows (with daily rates as seen below):
Trade size X closing price X (+/- short-term interbank rate – the Fulbright Securities Limited mark-up)
Here the +/- depends on whether one has taken a short or a long position on an instrument.
22:00 GMT is considered to be the beginning and the end of a trading day. Any positions which are still open at 22:00 GMT sharp are subject to rollover and will be held open overnight. Positions opened at 22:01 are not subject to rollover until the next day, but if you open a position at 21:59, a rollover will take place at 22:00 GMT. For each position open at 22:00 GMT, a credit or debit will appear on your account within an hour.