Rollover and Offset Instructions Sample Clauses
The Rollover and Offset Instructions clause defines how existing positions or contracts can be extended (rolled over) or closed out by offsetting them with new transactions. In practice, this clause outlines the procedures and requirements for a party to continue a position beyond its original term or to neutralize an open position by entering into an opposite transaction. Its core function is to provide clear operational guidelines for managing open positions, thereby reducing uncertainty and ensuring both parties understand how and when positions can be maintained or closed.
Rollover and Offset Instructions. 43.1 Rollover is the process of extending the settlement date of an open position (i.e. date by which an executed trade must be settled). The forex market allows two business days for settling all spot trades, which implies the physical delivery of currencies. In margin trading, however, there is no physical delivery, so all open positions must be closed daily at end-of-day (22:00 GMT) and re-opened on the following trading day. This pushes out the settlement by one more trading day. This strategy is called rollover.
43.2 Rollover is agreed on through a swap contract which comes at a cost or at a gain for traders. We do not close and re-open positions, but will charge you a fee in respect of each such position and debit/credit your trading Accounts for positions held open overnight, depending on the current interest rates (LIBOR/LIBID with added mark-up) (“Rollover Fee”). As 2:00 GMT is considered to be the beginning and the end of a forex trading day, any positions which are still open at 22:00 GMT sharp are subject to rollover and will be held 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 a credit or debit appears on your account within 1 hour, and will be directly applied to your equity account.
43.3 The Rollover Fees that we charge will be published on our Online Trading Facility. We shall attempt to collect such Rollover Fees from the free balance in your Account with us. In the event that we are unable to collect such Rollover Fee(s) from the free balance in your Account with us, we reserve the right to close part, or all, of your open positions as per our Order Execution Policy. You shall be liable for promptly paying all Rollover Fees(s), even if all Margin previously deposited by you has been lost.
43.4 In the absence of clear and timely instructions from you, we are authorised, at our absolute discretion, to offset all or any portion of the positions in your Account(s) or to make or receive delivery on your behalf upon such terms and by such methods deemed reasonable by us.
Rollover and Offset Instructions. 10.4.1. Rollover refers to the extension of the settlement date for an open position in trading. In the forex market, spot trades are typically settled within two business days through physical currency delivery. However, in margin trading, where physical delivery is not involved, all open positions need to be closed at the end of each day (22:00 GMT) and reopened on the next trading day. As a result, the settlement is pushed forward by an additional trading day. This practice is known as rollover.
10.4.2. Rollover is determined by a swap contract, incurring a cost/gain for traders. A fee is charged for each open position held overnight, based on the current inter-bank rate + mark- up. Positions open at 22:00 GMT are subject to rollover, while positions opened after 22:01 are not until the next day. Positions opened at 21:59 incur rollover at 22:00 GMT, with a credit/debit applied to the equity account.
10.4.3. Rollover Fees will be displayed on our Trading Platform & deducted from your Account balance. If unable to collect, we reserve the right to close open positions. You must promptly settle all Rollover Fees.