Overnight interest calculation
1. The day of overnight interest.
According to international banking practice, foreign exchange transactions are settled after 2 trading days. Overnight interest is calculated on the settlement date.
Monday: 1 day overnight interest. Trading on Monday, settlement on Wednesday, holding positions from Monday to Tuesday, and settlement date from Wednesday to Thursday, so you have to pay/collect 1 day interest.
Tuesday: 1 day overnight interest. The holding time is from Tuesday to Wednesday, and the settlement date is from Thursday to Friday, so the interest of 1 day should be paid/collected.
Wednesday: 3 days overnight interest. Hold positions from Wednesday to Thursday, and Friday to next Monday is the settlement date, so you have to pay/charge interest for 3 days.
Thursday: 1 day overnight interest. The position is held from Thursday to Friday, and the settlement date is from next Monday to next Tuesday, so the interest of 1 day should be paid/charged.
Friday: 1 day overnight interest. Hold positions on Friday until next Monday, and the settlement date is Tuesday to Wednesday. You only need to pay/collect 1 day interest (as shown below).
* Note: The interest rate is the highest on Wednesday, so try to avoid holding overnight orders on Wednesday when trading. Overnight interest on foreign exchange is charged by banks, not platform vendors. If the customer uses a high-interest currency, the overnight interest on the open position will be added to the account funds. On the contrary, the related overnight interest will be deducted from the funds.