GTS Rollover / Swap (FX)

GTS clients can choose the following "3-Tier” system of daily premiums that reflects the degree of leverage chosen by the client.

Tier 1 – Institutional

This set of rates is available to accounts that select leverage of 50:1 or less. The rates offered are directly based on the interest rate differentials in the interbank cash market and closely reflect the rates available to more unleveraged, institutional-type participants in that market.

Tier 2 – Retail

This set of rates will apply to accounts that select a leverage of 100:1. The rates are based on those available in the interbank market but include an additional spread which will take into account the higher degree of leverage chosen by retail forex accounts.

Tier 3 – Leveraged

This set of rates will apply to those accounts that select leverage of 200:1 or higher. Although based on the rates available in the interbank market, these rates have been adjusted to include a “cost of capital” spread. This spread is based on the institutional lending rate charged to cover the capital costs of maintaining positions on a leveraged basis. By choosing a significantly higher degree of leverage, a client is basically borrowing against the net capital of the brokerage company.

At 5:00 PM each day, funds are subtracted from or added to accounts with open positions because of this automatic roll over.

Note

On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position is three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period. When there are bank holidays in either settlement country the normal roll schedule does not apply.

* The "end of day” premium process commences at 5pm Eastern Time each day and can take several minutes to complete. Trades that are open at 5pm will generally receive or be charged a premium based on the change of value date. Clients seeking to place trades to earn interest should always make sure that they have sufficient equity in their account to “maintain” those trades. They should not rely on the application of the end-of-day premium to sustain their positions and clients should be responsible for any account that receives a margin call under these circumstances.

You can view the daily premium charge percentages directly from the GTS platform. Just click "Cost of Carry" from the GTS main window.

Calculate GTS Rollover

The following Tier 1 Institutional EUR/USD premium bid and ask rollover rates are 0.65 and -1.8 respectively. Please note that the GTS rollover rates are represented in annualized percentage points.

Example

According to the following table, when you sell euro against U.S. dollar, you will gain 0.65% annually on the traded amount. Let's assume you sell 100,000 (1 standard lot) EUR/USD and the exchange rate at the rollover point is EUR/USD 1.3000. When your position rolls over, you will receive: 0.65 / 100 / 360 x 100,000 x 1.3000 = $2.34

On the other hand, if you buy 100,000 (1 standard lot) EUR/USD and the exchange rate at the rollover point is EUR/USD 1.3000. You will pay: -1.8 / 100 / 360 x 100,000 x 1.300 = -$6.5