FOREX Rollover / Prem. Rates



Forex Rollover / Premium automatically occurs each evening between 4:58 and 5:06 p.m. EST (Monday through Friday). In addition, MBT begins MetaTrader 4 maintenance at 4:57 pm EST, one minute earlier. During this time, users will temporarily be unable to trade.

During the rollover period, interest is added to or subtracted from accounts with open positions based on the annual Buy or Sell Premium rates.

 

Daily Premium Formula

Volume (in USD) * [ (Premium Rate / 100) / 360 ]

Example
100,000 EUR/USD | Premium Rate of -1.83

(100,000*1.3426) * [( -1.83 / 100) / 360] = ($6.82)
or
(100,000*1.3426) * (-1.83% / 360) = ($6.82)

 

What is Rollover?

Rollover interest arises from holding a currency pair overnight, which may result in debit or credit interest posted to an account. Foreign currency trading involves borrowing one currency to buy another whereby the borrowed currency is charged debit interest and the purchased currency is paid interest. The net difference of the two numbers results in a credit or debit interest charge (rollover), if held overnight.

"Spot Forex market transactions have a value date that is two business days forward. Rollover involves exchanging the current position for a position expiring the following settlement. Industry practice is if a trade is executed on Tuesday, then Thursday would be considered the value date. An exception occurs if a position is opened and held overnight on Wednesday. The normal value date for Wednesday would be Friday at 5:00 PM ET, however, since the market closes at 5:00 PM ET the value date is extended to the following Monday. Positions that are held overnight on Wednesdays will earn or incur an extra two days of interest (due to the weekend). Additionally, positions with a value date that fall on a holiday also incur or earn additional interest."

To avoid rollover interest debits or credits on your positions, simply make sure your position is closed prior to 5pm EST (the established end of the market day).

 

Premium Rates

Annual premium rates can be found by adding the "Buy Prem." and "Sell Prem." columns to your Positions or Watchlist windows.


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MB Trading, IB member FINRA, SIPC; MB Trading Futures, Inc. RFED/IB and member NFA. Trading in futures, options and Forex is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, options and Forex because there is always the risk of substantial loss. MBTFS and MBTFX are sometimes referred to collectively herein as "MB Trading."

1MB Trading FX offers two Forex pricing models. Both models employ our RFED to client facing execution system with slightly different pricing and markup models.  For purpose of clarity the two pricing models (Plan 1 and Plan 2) both operate on the same technology.  The underlying technology is named The MB Trading Electronic Xrossing Network, abbreviated as EXN for the remainder of this disclaimer.  The main differentiator between the models is twofold.

A.    Difference in amount of markup or markdown of liquidity partner (banks) quotes when displayed to clients.
B.    Commission Structure charged to client

Plan 1 or “Pay for Limit” plan employs the EXN technology in a commission model. This model charges a client 2.50 in their base currency per 100k of executed currency for market orders and pays a client .50 of base currency for posted, executed limit orders. In the Pay for Limits model, the term "Payment for Limit Order" refers to a non-market order which is not immediately executable and rests on the internal limit order book for some period of time, thus adding liquidity when another order of equal or greater value fills with the resting order.

Free Commission Plan employs the EXN technology in a markup only plan, which means that MB Trading receives a markup embedded in the spread as compensation. This plan does not add an additional commission, does not pay the client a rebate for posted liquidity as Plan 1 does yet does still offer the benefit of allowing the client to post quotes which is displayed to all other clients on Plan 2.

Additional information to note is that “Actual Total Paid to Clients” counter is kept on the company website which displays The Actual Total Paid to Clients currency number which is updated every five minutes and stops counting during the weekend when the market is closed. The number calculates from the launch of Pay for Limits, which was January 31, 2011.

Due to higher cost of business in China, “Get paid for limit orders” is not available for Chinese residents. All Chinese residents have a fee of 2.50 for all order types. Accounts with special commission rates are excluded from Payment for Limit Orders. There is a minimum fee of $0.01 for all Forex and spot trading orders that take liquidity.

MB Trading earned a 4.5 out of 5 star rating in Barron’s 2011 Review of Online Brokers, tying for the top spot overall. The company earned a total of 33.8 points, one tenth of a point under the top score. MB Trading also scored in the top three for separate categories of Range of Offerings, Trade Experience, Trading Technology, Usability, and Customer Service and Education. MB Trading earned a 4.5 out of 5 star rating in Barron's 2010 Review of Online Brokers. The company ranked second overall and tied for first place in the categories of Trade Experience and Portfolio Analysis & Reporting. The company also won the category of Usability. The company also tied for first place in the separate categories of "Best for Frequent Traders" and "Best for Options Traders." This survey evaluated 27 Online Firms and does not include all Online Brokers.

*Real-time Forex Quotes are provided via the MBT Quote API. Quotes are available during platform hours from Sunday at 5 pm EST to Friday at 5 pm EST, except during the scheduled maintenance period from 4:58 pm to 5:06 pm EST. Extended maintenance periods are possible, and messages regarding maintenance are sent via the MBT Desktop, MBT Desktop Pro, and MBT Web 2.0 trading platforms. In addition, MBT begins MetaTrader 4 maintenance at 4:57 pm EST, one minute earlier.

MB Trading provides FREE real-time streaming Forex quotes in all software platforms. Demo accounts receive FREE streaming Stocks, Futures, and Options quotes which are delayed up to 20 minutes (per individual exchange requirement). FREE real-time streaming quotes for Stocks, Futures, and Options is available to nonprofessional users with funded, live accounts.

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