Overnight Policy

Dukascopy Bank's Overnight Policy aspires to provide attractive cost of carry conditions to institutional clients in order to strengthen the company's leadership as a forex Bank in FX industry.

* Cost of carry rates in the table above are denoted in "pips".
** For detailed calculations, please refer to the Forex calculator tool.

Institutional cost of carry rates shall be applied to accounts that satisfy the minimum monthly turnover criteria, currently set at USD 1 billion monthly. Should the figure be reached during a month, the account shall be entitled to the institutional cost of carry rates for the following month. Regular cost of carry rates shall be applied to accounts that do not satisfy the institutional criteria. Cost of carry rates published on the website are for informative purposes only.

The overnight policy basically describes the process of rollover of any existing exposure to the next settlement if it is necessary to avoid cash delivery and receipt of the currencies involved. Each day at the end-of-day settlement time [set at 21:00 GMT or 22:00 GMT, depending on the season], open exposures are swapped to the next settlement date. The process consists of simultaneously closing the existing exposure at the daily close rate [swap near leg], and opening the same for the next settlement date [swap far leg] at the cost of carry price. Users are able to see the impact of the cost of carry process in the various reports. While cost of carry points are readily shown in the position report, both near and far legs of the swap transaction are shown in intraday and portfolio statements, the near leg being labeled as "rollover close", and the far leg as "rollover open".

Dukascopy Bank uses the following central bank target rates as a basis for its overnight policy set-up. It must be stressed that Dukascopy Bank adds its own carry costs to the rates applied to the clients.

Dukascopy Bank may change, modify or amend in part, or fully, the above described overnight policy according to the situation on the market.