This article explains overnight fees, also known as rollover or custody fees, that are applied to short positions in Forex, stocks, Cryptocurrency CFDs, and Funds. It covers how these fees are calculated and when they are charged.
When are rollovers and custody fees charged?
Rollover fees are charged for holding short positions in stocks, as well as for positions in all CFD, cryptocurrencies, funds, and Forex instruments.
Custody fees are safekeeping fees charged for holding bonds.
How are rollovers calculated?
To calculate the rollovers and custody fees, we use the following formula:
(abs(Position.Value)*Rate(%)/360)*days = rollover amount
where:
Position.Value = Position Quantity * Price
Note: Overnight is paid from full position value, not just the part covered by the client's cash per leverage set-up.
Example:
Current Notional Value: $100,000 USD
Overnight Rate: 0.30%
Days Charged: 3
To calculate the overnight charge, multiply the notional value by the overnight rate, divide by 360 to account for the annual days, and multiply by the number of days charged (3), as per the formula:
Substituting the values:
Thus, the overnight charge will be $2.50 USD.
Rate information can be found in the "Overnights" tab of the Client's area.
Overnight is calculated at 17:00 NYT on weekdays, and weekend overnights are calculated on Wednesdays. However, it is important to remember that the calculation is based on the previous (closed) trading day’s balance.
Can rollover fees be refunded if I close my positions before the weekend?
Rollover fees charged on Wednesdays are applied three days in advance to cover settlement periods, which vary across markets, and ensure positions held over the weekend are processed on time. These fees are non-refundable, as they account for the cost of holding the position during that period, even if the position is closed early. Once charged, the fees compensate for the capital commitment and associated risks during the scheduled period.
The fees vary based on the market conditions and are subject to change. The most current overnight fees for short positions and Forex positions can be found in the Client's Area.
Note: In the Reports section in the Client's Area, all Overnight fees are listed under ROLLOVER.
How can I stop rollover fees from being charged to my account?
To stop rollover fees from being charged to your account, you need to close your open positions:
For short stock positions: Close the position by placing a Buy order for the same amount of shares.
For Forex and all CFD positions: Close the position by placing a Sell order for the same number of shares.
Once these positions are closed, rollover fees will no longer apply.
For detailed instructions on closing positions, please refer to the article "Closing Positions at EXANTE: A Step-by-Step Guide."