Rollover financing

FX CFDs have a two-day settlement period but are offered as a rolling spot contract by Spread Co. Spread Co, and in some cases our broker partners, conduct automatic position rollovers at the end of every trading day. During the rollover process Spread Co extends the value date of clients' positions by closing and reopening each of these open positions.

For foreign exchange trades, the closing and opening prices generally differ by a fractional amount, to reconcile interest rate differentials in the underlying currencies. Clients will receive a rollover financing credit for being long in a higher interest yielding currency and short in a lower interest yielding currency. Conversely, clients will incur a rollover financing debit for being short in a higher interest yielding currency and long in a lower interest yielding currency. See FX examples to learn more.