ROLLOVER

UTC Broker will not charge a rolling commission from its clients like other major Forex brokers. We charge only a rollover fee (also called an overnight swap). This fee is computed at the time when a trader leaves his place open past 00:00 GMT.

Background Information

Rollover is defined as the interest rate pay or receives by Forex trader on open position that is rolled over from one day to the next. Interest rate varies among currency pairs. Traders will receive or pay interest rate at the end of each trading day, at 00:00 GMT on the currency pairs they have.

How does it work?

Interest is calculated on each day in the Forex market. Traders can view their account statements to verify whether they receive or charged the rollover fee at the end of each trading day at 00:00 GMT. We charge the past trading day rollover rate in regular week days. Since there are 5 days in a trading week, on Wednesday rollover interests are charged for 3 days for the next weekend.

The following is a brief explanation of rollover interest:

Case 1: The rate of interest of primary currency is lesser than the secondary currency.

The EUR is the primary currency in the pair and the interest rate of EUR is lesser than the secondary currency, which is the Australian Dollar (AUD).

Buy – Long:When the customer purchases the EUR, he will be charged (pays) the rollover fee.

Sell – Short:When the trader sells the EUR, he will receive (earn) the rollover fee.

Case 2:The rate of interest of primary currency is greater than the secondary currency.

For an Example: Australian $ is the main currency in the pair and the interest rate of Australian $ is higher than Canadian $ (CAD).

Buy – Long:In this scenario, when the trader purchases the AUD, he will receive (earns) the rollover fee.

Sell – Short: In this scenario, when the trader sells the AUD, he will be charged (pays) the rollover fee.

It is very important to know that the calculation of trade volume made impact on the amount of rollover fee. As the volume increases, the rollover fee also increases. Consider that on Wednesday rollover interests are charged for 3 days for the next weekend.

Explanation of Daily Rollover Fees

On Wednesday the Forex Market charge three days of rollover fee, it makes Wednesday rollover fee three times bigger than the amount on Tuesday. This is because of the banks around the world charge interest on Saturday and Sunday, because on these days market is closed.

Rollover fees are charged as follows:

From Sunday night to Monday: Normal rollover fee

From Monday night to Tuesday: Normal rollover fee

From Tuesday night to Wednesday: Normal rollover fee

From Wednesday night to Thursday: rollover fee is charged three times higher (for Wednesday, Friday and Saturday)

From Thursday night to Friday: Normal rollover fee

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