Overnight Policy

Dukascopy’s Overnight Policy aspires to provide the most attractive overnight conditions to institutional clients in order to strengthen the company’s leadership in FX industry. New overnight rates will take effect as of January 1, 2008.

* Overnight rates in the table above are denoted in "pips".
** For detailed calculations, please refer to the Forex calculator tool.

Institutional overnight rates shall be applied to accounts which satisfy the minimum monthly turnover criteria, currently set at USD 1 billion monthly. Should the figure be reached during a month, the account shall be entitled to the institutional overnight rates for the following month. Regular overnight rates shall be applied to accounts that do not satisfy the institutional criteria. Overnight rates published in the website are for information purposes only.

The overnight policy basically describes the process of rollover of any existing exposure to the next spot settlement in order to avoid physical delivery and receipt of the currencies involved. Costs associated with such a process depend on the interest rate of the currencies being carried. As a result, clients shall earn, or be charged for, the interest rate differential roughly implied in the currency pair in which they may be exposed. Each day at the end-of-day settlement time [set at 22 :00 GMT], open exposures are swapped to the next spot settlement date. The process consists of simultaneously closing the existing exposure at the daily close rate [swap near leg], and opening the same for the next settlement date [swap far leg] at the swap rate price. Users are able to see the impact of the swap process in the various reports. While swap points are readily shown in the position report, both near and far legs of the swap transaction are shown in intraday and portfolio statements, the near leg being labeled as « rollover close », and the far leg as « rollover open ».

Dukascopy uses the following central bank target rates as a basis for its overnight policy set-up. It must be stressed that Dukascopy adds its own carry costs to the rates applied to the clients.

Dukascopy can change, modify or amend in part, or fully, the above described overnight policy according to the present situation in the market.