Margin FX Funding

1. Interest on Credit and Debit Balances – Funds Held
Interest is paid on your net free credit balance which is your cash balance plus or minus all variation margins, less any initial margin requirements for all open positions and other costs. In the event your account balance becomes a debit (ie margin call) you will be charged interest daily. 

2. Interest you may receive or pay when Margin FX spot and forward contracts are “rolled over”.
Margin FX contracts that are “rolled over” (i.e. Spot or Forward contracts) will result in you paying or receiving interest at the rollover rate. The rollover rate is the interest rate differential between the two applicable currencies.

For example:
• if you have a long AUD/USD position (i.e. you have bought the Australian Dollar
against i.e. sold the US Dollar) and interest rates are higher in Australia than in the
USA then you receive interest at the rollover rate if you hold the position overnight
and do not close it before the settlement time. This is because you are holding the
higher yielding currency.
• However, if the USA interest rate is higher than the Australian interest rate and if
you hold the position overnight and do not close it before the settlement time, then
you will be required to pay interest at the rollover rate. This is because you are
holding the lower yielding currency.
• There is also a financing cost that the client will receive or pay for the unrealised
profit/loss attributed to the open position. This will be calculated by using the EOD
(End of Day) profit/loss and the prevailing interest rate for the relevant currency
pair.

The rollover rate will therefore vary depending upon:
• the currency pair your are trading;
• the applicable interest rates in the interbank markets according to the period of the
   rollover i.e. the interest rates offered for each currency pair (paid or earned); and
• the size of the position.

You should note that the rollover rate (i.e. the interest that you pay or receive) is reflected in the price at which the open position is rolled forward i.e. it is included in the price (or rate at which the contract is rolled) and is not an additional cost.

3. Other costs
Conversion Fee - You will be charged a “conversion fee” when converting currencies to your Base Currency. This occurs each time there is a conversion from a Term Currency to your Base Currency.