ROLLOVER/ INTEREST POLICY

Foreign exchange trading at Alpari (UK) is dealt on a "Spot" basis only. This means that all trades settle two business days from inception, as per market convention. The settlement date is referred to as the value date. Alpari (UK) does not arrange physical delivery of currencies hence, all positions left open from 10:59:45 p.m. to 10:59:59 p.m. (London time) will be subject to a rollover.

A rollover involves closing and immediately reopening the position at a slightly different level from that of the closing price. The difference in closing and opening prices depends on the prevailing interest rates of the underlying countries whose currencies your trade relates to.

For example, let’s assume that the interest rates in the EU and USA are 4.25% p.a and 3.5% p.a respectively. Every currency trade involves borrowing one currency to buy another. If you have a buy position of 1.0 lot in EUR/USD, then you earn 4.25% on your Euros and borrow USD at 3.5% per year.

In other words:

• If you have a long position (i.e. bought) and the first currency in the currency pair has a higher overnight interest rate than the second currency, then you receive a gain.
• If you have a short position (i.e. sold) and the first currency in the currency pair has a higher overnight interest rate than the second currency, then you lose the difference.
• If you have a long position (i.e. bought) and the first currency in the currency pair has a lower overnight interest rate than the second currency, then you lose the difference.
• If you have a short position (i.e. sold) and the first currency in the currency pair has a lower overnight interest rate than the second currency, then you receive a gain.

Please note that if you open and close a position before 10:59:45 p.m. (London time) you will not be subject to a rollover.

As mentioned above, Alpari (UK) rolls all open positions by closing and immediately reopening the position at a slightly different level from that of the closing price. Rollover charges, (or Swap Points), can be found on the "Rollover/ Interest policy" webpage. See the examples below for detailed explanations.

Let’s assume that:

• you have a long position in EUR/USD. Swap points for rolling over open long positions in EUR/USD are +0.890 pips. This means that the position will be reopened at the closing price + 0.890 pips. So as a result of the rollover, you will be charged 0.890 pips.
• you have a short position in EUR/USD. Swap points for rolling over open short positions in EUR/USD are +0.660 pips. This means that the position will be reopened at the closing price + 0.660 pips. So as a result of the rollover, you will earn 0.660 pips.
• you have a long position in USD/CHF. Swap points for rolling over open long positions in USD/CHF are -1.140 pips. This means that the position will be reopened at the closing price - 1.140 pips. So as a result of the rollover you will earn 1.140 pips.
• you have a short position in USD/CHF. Swap points for rolling over open short positions in USD/CHF are -1.320 pips. This means that the position will be reopened at the closing price - 1.320 pips. So as a result of the rollover you will be charged 1.320 pips.

The act of rolling the currency pair over is known as tom.next, which stands for tomorrow and the next day.

NB: When you roll an open position from Wednesday to Thursday, then Monday next week becomes the value date, not Saturday; therefore the rollover charge on a Wednesday evening will be three times the value indicated on the "Rollover/ Interest policy" webpage.

Let’s assume that:

• you have a long position in EUR/USD. Swap points for rolling over open long positions in EUR/USD are +0.750 pips. This means that the position will be reopened at the closing price + 0.750 pips. So as a result of the rollover, you will be charged 0.750 pips.
• you have a short position in EUR/USD. Swap points for rolling over open short positions in EUR/USD are +0.320 pips. This means that the position will be reopened at the closing price + 0.320 pips. So as a result of the rollover, you will earn 0.320 pips.
• you have a long position in USD/CHF. Swap points for rolling over open long positions in USD/CHF are -0.890 pips. This means that the position will be reopened at the closing price - 0.890 pips. So as a result of the rollover you will earn 0.890 pips.
• you have a short position in USD/CHF. Swap points for rolling over open short positions in USD/CHF are -1.270 pips. This means that the position will be reopened at the closing price - 1.270 pips. So as a result of the rollover you will be charged 1.270 pips.

Symbol	Long	Short
EURUSD	0.750 pips	0.320 pips
USDCHF	-0.890 pips	-1.270 pips
GBPUSD	0.270 pips	-0.320 pips
USDJPY	-1.320 pips	-1.670 pips
AUDUSD	-0.070 pips	-0.310 pips
USDCAD	-0.170 pips	-0.510 pips
EURCHF	-0.520 pips	-1.060 pips
EURJPY	-1.120 pips	-1.620 pips
EURGBP	0.390 pips	0.170 pips
GBPJPY	-2.630 pips	-3.320 pips
GBPCHF	-1.780 pips	-2.530 pips
EURCAD	0.410 pips	-0.080 pips
EURAUD	1.320 pips	0.780 pips
NZDUSD	-0.330 pips	-0.550 pips
USDSGD	-0.890 pips	-1.360 pips
CHFJPY	-0.230 pips	-0.530 pips

Note:
When you roll an open position from Wednesday to Thursday, then Monday next week becomes the value date, not Saturday; therefore the rollover charge on a Wednesday evening will be three times the value indicated above.