At FNmarkets, overnight fees are charged under specific conditions:
1. Position Holding: Overnight fees apply when traders hold positions on CFD instruments overnight, meaning beyond the daily trading session cutoff time. This is typically at 00:00 server time.
2. Interest Rate Differential: The amount of the overnight fee, also known as a swap rate, is influenced by the interest rate differentials between the currencies involved in the trade. It varies based on whether the position is long (bought) or short (sold).
3. Daily Calculation: These fees are calculated and applied daily to reflect the cost of holding positions overnight. The calculation considers factors such as the size of the position and the prevailing interest rates.
4. Market Conditions: During periods of high volatility or significant economic events, overnight fees may fluctuate to align with market conditions.
5. Wednesday Charge: Due to the T+2 settlement rule, overnight fees on Wednesday are charged at a triple rate. This is because positions held overnight on Wednesday account for the weekend when markets are closed. The fee for Wednesday reflects the cost of holding the position through the weekend.
Overnight fees can fluctuate depending on interest rate differentials and market condition. Traders can find more detailed information about when and how overnight trading charges are charged by visiting our official website.