Shares CFD Trading

Definition

Rollover, also known as Swap or Overnight Fee, is an interest paid or earned as a result of holding a position open overnight on a Derivative. Rollover Policy is aimed to establish and maintain a fair fee across all the tradable securities and asset classes. Throughout most of the available securities, apart from Forex and Gold, the rollover fee constitutes of an internal interest fee plus or minus the rollover fee we gather from the counterparties we collaborate with for that respective security (broker’s fee). For the remaining The company may credit or debit client’s account and its a function of leverage provided, volatility and market risk. Rollover fees are assessed on a continuous basis and amended weekly and/or when needed.

Rollover Calculation - Example

Rollover Debit Simulation

Account Base Currency: EUR
Security: USA100 (Nasdaq)
Position Size: 1 lot (1 Contract)
Side: Buy (Long)
Currency Rate: EURUSD 1.09

Swap: -470

Days: 1

Point value

Rollover Fee Formula = Number of lots *contract size*number of days *swap value*point value

Calculation: 1*1*-470*0.01=-4.70 USD in EUR =-4.70/1.09=-4.31

Swap Free Trading

XLibre offers swap-free trading conditions on specific trading accounts for clients who observe Sharia law, however, several instruments may face Carry Charges after a position has been rolled over for sequential period of days.

Swap-free is applicable for:

AUDUSD, EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY, AUDCAD, AUDCHF, AUDJPY, AUDNZD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURCZK, EURGBP, EURHKD, EURHUF, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPHKD, GBPJPY, GBPNZD, HKDJPY, NZDCAD, NZDCHF, NZDJPY, USDCNH, USDCZK, USDHKD, USDHUF, XAGAUD, XAGEUR, XAGUSD, XAUAUD, XAUEUR, XAUUSD

* The duration of the swap-free option is applicable for seven (7) calendar days from the date it becomes applicable.

*. The Company reserves the right to revoke swap-free status at its absolute discretion.

Shares and Corporate Actions

Positions on shares are subject to an overnight financing credit/debit charge. Please note that when traders open and close a position within the same trading day, they are not subject to overnight financing.

Share CFD rollover fees are 10% per year based on the opening price.

Shares Calculation - Example

Share Rollover Simulation

Account Base Currency: USD
Account Quote Currency: USD
Security: FaceBook
Position Size: 1 lot = Contract Size 100 Shares
Side: Buy (LONG)

Days: 1

Point value: 0.01

Share Rollover Formula: (number of lots*contract size*opening price*number of days*swap value*point value ))/360)

Calculation: (1*100*520*1*-10*0.01)/360=-14 usd

These overnight charges can be adjusted for corporate actions such as cash dividends pay outs, exchange offers, dividend options, bonus issues etc. For example, if a share CFD traded by the client and held overnight pays out dividend on that date (goes ex-dividend date), then the client with a long position will be entitled to receive the dividend as an adjustment in the swap. In the case that the client holds a short position on the share CFD, this position will be charged the relevant dividend adjustment through the overnight swap. In this example the swap for long positions will be increased to reflect the dividend payment, and the swap for the short positions will be decreased respectively.

Dividends

Clients holding Long positions on the date a Share CFD goes ex-dividend will receive the dividend amount in the form of a balance adjustment (deposit).

Clients holding short positions on the date a Share CFD goes ex-dividend will be charged the dividend amount in the form of balance adjustment (withdrawal).Dividends Calculation - Example

Dividend Adjustment Simulation

Account Base Currency: USD
Account Quote Currency: USD
Security: Goldman Sachs
Position Size: 1 lot = Contract Size 100 Shares
Side: Sell (Short)
Ex-dividend amount: 0.80 USD (per share)

Dividend Adjustment Formula: Number of lost*Contract Size * (Dividend amount) Calculation: 100 *-0.80= -8 USD

Dividend balance adjustments will begin to be processed at 00:00 server time on the day the specific share trades ex-dividend.

Rollover Charging Schedule

The beginning  and end of the trading day is considered to be A position opened at 00:01 (server time) is not subject to rollover until the next day, while a position opened at 23:59 (server time) is subject to rollover at 00:00 (server time).

A credit or debit for each position opened at 00:00 will appear in your account, it is applied directly to the trade via the swap field and reflects automatically into your account balance.

Server Times

GMT+3: Last Sunday of March to Last Sunday of October

GMT+2: Last Sunday of October to Last Sunday of March

Weekends and Public Holidays

Despite markets are mostly closed during weekend and local public holidays, interests remain applicable for positions held during those periods. To measure for this, weekend rollover fees are computed and applied for three days on Wednesdays, which makes a typical Wednesday rollover three times the amount. Please note that for indices instruments triple swap is applied on Friday instead.

Triple Swap - Example

Rollover Credit Simulation for Wednesday

Account Base Currency: USD
Security: GBPUSD
Position Size: 0.50 Lots (50,000)
Side: Sell (Short)
Currency Rate: USD

Swap value: 2

Triple Rollover Fee Formula = Number of lots *contract size*number of days *swap value*point value

Calculation: 0.5*100000*3*2*0.00001= 6 USD

As per the above, rollover fees are also applied as usual for all instruments during public holidays no matter whether the instrument is tradable or not during that day.

Description

The open trading hours of the XLibre Metatrader Platform for Foreign Exchange instruments are between Monday 00:05 and Friday 23:55 Server time. Please note that Server Time is subject to Daylight Saving Time (DST), which begins on the last Sunday of March and ends on the last Sunday of October. Server Times: Winter: GMT+2, Summer: GMT+3 (DST).

Please be aware that during the first few hours after trading open, the market tends to be thinner than usual until the Tokyo and London market sessions begin. These thinner markets may result in wider spreads and may increase the likelihood of orders being filled at a different price than the requested price, as there are fewer buyers and sellers. This is largely due to the fact that for the first few hours after the open, it is still the weekend in most of the world.

Trades and orders held over the weekend are subject to execution at the next available market price based on available liquidity. After the open, traders may place new trades, and cancel or modify existing orders.

For more information, please refer to our trading schedule for the current month below:
Trading Schedule - May 2024