Dukascopy Europe's Rollover Policy sets out the rollover conditions applicable to client trading accounts. Dukascopy Europe applies different rollover rates depending on the client's Trading Activity, with higher Trading Activity potentially resulting in more favorable rollover conditions.
The rollover conditions applicable to a client's trading accounts are determined dynamically based on the client's Trading Activity. Trading Activity is calculated over the last 30 calendar days across all of the client's trading accounts as the total trading volume divided by the sum of the trading volume and the overnight volume.
Trading Activity
=
Trading Volume
Trading Volume + Overnight Volume
x
100%
Please note: The overnight volume is the total volume of open positions carried over to the next trading day. The trading volume is the total volume of all executed orders, excluding rollover trades.
Trading Activity reflects the trader's tendency to trade intraday more frequently than to keep positions overnight. Trading Activity is recalculated on a daily basis at the settlement time and the rollover policy is defined according to the percentage levels below:
| Rollover Policy | Required Trading Activity |
|---|---|
| Premium | > 90% |
| Advanced | >20 % |
| Regular | < 20% |
If no trading statistics are available for the previous 30 calendar days, the Advanced Rollover Policy is applied by default. Clients whose Trading Activity exceeds 90% qualify for the Premium level and the corresponding rollover rates. Clients can view the Rollover Policy currently applied to their accounts in the “Rollovers” report. For more information on how Trading Activity is calculated, see the examples below.
Information about risks
CFD trading is speculative and involves a high risk of substantial losses due to leverage. You may lose all funds allocated to CFD trading. However, Dukascopy Europe limits the client's liability to the amount of margin deposited in the trading account, meaning that the client is not required to cover a negative balance.
Rollover Procedure
The rollover procedure describes the daily process used to carry existing exposure into the new trading day. This process, also known as a “position roll”, “carry” or “overnight swap”, allows positions that remain open at the end of the trading day to be carried forward without full settlement and delivery.
For most instruments, the trading day changes at 21:00/22:00 GMT, depending on US daylight saving time in March and November. For currency pairs containing NZD, the trading day changes at 19:00/18:00 GMT, depending on New Zealand daylight saving time in April and September. On Fridays, the change takes place at 21:00/22:00 GMT, depending on US daylight saving time.
The end-of-day settlement process takes place at 21:00/22:00 GMT, depending on summer or winter time. For each position that remains open when the trading day changes, the existing position is closed at the settlement price and simultaneously reopened for the new trading day at the settlement price adjusted by the applicable overnight adjustment in pips, as shown in the table. These transactions are recorded as “rollover close” and “rollover open” and can be viewed in the portfolio and intraday statements. Clients can also view the effect of the rollover adjustment in the position report.
Rollover Rate Updates
Overnight swap rates are generally influenced by the interest rate differential between the two currencies in a currency pair. The central bank reference rates shown in the table below are used as a reference when determining rollover conditions. Dukascopy Europe sets and updates the rates applied to clients based on prevailing interbank overnight swap rates and includes its own costs associated with holding and rolling over positions.
| USD | Federal Funds Target Rate |
| EUR | Main Refinancing Rate |
| GBP | Official Bank Rate |
| JPY | Uncollateralized Overnight Call Rate |
| CHF | Average Repo Overnight Rate |
| CAD | Target Key Interest Rate |
| AUD | Cash Target Rate |
| NZD | Official Cash Rate |
Swap-free accounts
Swap-free accounts are trading accounts designed to comply with Islamic finance principles.
The overnight swap adjustment, which is normally charged to or credited to client accounts as the price difference between “rollover close” and “rollover open” trades, is not applied to swap-free accounts. Accordingly, both rollover trades are booked at the same price. At the end of each trading day (21:00/22:00 GMT, depending on summer or winter time), no interest is credited to or debited from the Client’s trading account with Dukascopy Europe in respect of open positions.
To prevent inappropriate use of swap-free conditions, the following protective measures apply:
In addition to the standard volume commission, swap-free accounts are charged an additional fee of USD 5 per USD 1 million of currency trading volume and USD 7.5 per USD 1 million of trading volume in precious metals and CFDs.
Dukascopy calculates the difference between the additional commission paid by the client and the swap amount which is not applied to the account due to the swap-free conditions. If the difference is negative (the 'Deficit') and the account equity does not fully cover the Deficit Dukascopy will block further trading by closing opened exposures and canceling active pending orders.
The Deficit is calculated once a day at settlement time and is taken into account by adjusting the minimum Stop Loss Level.
The Deficit amount will be debited from the account if:
- the Client clicks the “Pay Deficit” button in the “Rollovers” report;
- the Deficit exceeds the equivalent of USD 5,000 or 10% of the account balance;
- the swap-free conditions are terminated;
- a full withdrawal of funds is made from the account;
- the account is charged in accordance with the applicable maintenance fee policy.
The amount of a partial withdrawal may not exceed the difference between the account equity and the Deficit.
In case of any conflict between these Swap-Free Account Terms & Conditions and any other contractual arrangement between the client and Dukascopy Europe, these Swap-Free Account Terms & Conditions shall prevail. Dukascopy Europe may, at its discretion, amend these Swap-Free Account Terms & Conditions, refuse to apply swap-free conditions or terminate their application. The Deficit may be debited from the account at any time.
Clients with a self-trading account can activate or deactivate the swap-free conditions at any time in the relevant account report, as illustrated below:
The additional fee of USD 5 or USD 7.5 per USD 1 million of trading volume, depending on the instrument type, is charged by Dukascopy Europe.
The Deficit is debited from the account.
Settlement Procedure
Settlement activities are performed daily and include all post-trade operations, such as trade settlements, rollovers, volume commissions, daily P&L conversions and other end-of-day adjustments. For information on value dates and overnight positions, please refer to the Rollover Policy. The settlement procedure is performed automatically at 21:00/22:00 GMT in the account's base currency. The account balance is updated daily following settlement. Clients can view their balance history in various reports available through the trading platform or web-based access.