Interest on open positions
|Interest on open positions|
|In the currency market, operations must be resolved within two business days. Therefore, if an investor sells 100,000 on day 1, they should be delivered on day 3. As most of the investors invest in currencies for speculation and not to be sent physically, they avoid changing the position for another which expires the following day; this concept is known as a “rollover”. At AFM, we will not impose restrictions on maintaining positions and we therefore will automatically charge your account the interest corresponding to the rollover, which will be applied to the open positions every day between 23:00 PM CET (+1 GMT).|
We believe that in this manner, we can facilitate your investment job without a need to worry about any other factor other than making your capital profitable.
|Do you want to know exactly what rollover is?|
|Read the example that we give below and you will see how easy it is to understand this concept;|
|When a user makes an investment to purchase a EUR/USD lot at 1.3300, they are taking out a loan of 133,000 US Dollars, to purchase 100,000 Euros. The investor must pay interest on the amount borrowed and has the right to receive the interest on the currency that they own. If the USD has a higher interest rate than the EUR, then the investor must pay the difference in the interest rate, as they own euros and have borrowed dollars.|