At FNmarkets, overnight refunds are credits or adjustments made to a trader's account when positions are held overnight. These occur due to the difference in interest rates between the currencies involved in the trade.
Here’s how it works:
1. If the currency you buy has a higher interest rate than the one you sell, you may earn a credit (refund) for holding the position overnight.
2. If the currency you sell has a higher interest rate than the one you buy, you may incur a cost for keeping the position overnight.
These refunds can help offset expenses like swap fees or rollover costs, making them a key consideration for overnight traders. The amount and availability of refunds are influenced by factors such as market conditions, interest rate differences, and FNmarkets' policies.