A Division of Commodity Futures & Options Service, Inc.
   FOREX BROKER  /  COMMODITY FUTURES BROKER  /  OTC METALS BROKER
    Investment Opportunities in Global Commodity Markets Since 1988

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We broker commodity futures, broker forex spot, broker forex options and broker OTC metals. For all of your online forex broker, online forex options broker, online OTC spot gold broker, online OTC spot silver broker and online commodity futures broker needs you only need one broker - CFOS/FX.  All of the professional brokers at CFOS/FX are licensed by the National Futures Association and are qualified to provide you with the following services: forex broker, forex options broker, commodity futures broker, commodity options on futures broker, OTC spot metals broker, OTC spot metals options broker and forex and futures consulting.  Commodity Futures and Options Service, Inc. is located in Houston, Texas. CFOS/FX provides both online and telephone brokerage services to retail and commercial clients.  Customer satisfaction is our top priority and we look forward to having you as our client.

ROLLOVER INTEREST CALCULATION

Trades placed by CFOS/FX clients in the spot forex market are settled in two days and open positions held at time of rollover are automatically rolled over by the FCM to the next settlement date.  In simplest terms, the open position is exchanged (swapped) for a new position expiring the following settlement date at 5pm EST rollover.  This process is also known as "tomorrow, next day" or simply "tom next." 

The two positions that are exchanged during rollover are generally not valued at the same price.  The difference in value is based on the difference of overnight bank interest rates between the two currencies traded.  If you are long the currency bearing the higher interest rate then you should receive a small credit in your account.  Conversely, if you are short the currency bearing the higher interest rate then you should experience a small debit to your account.  The nominal debit or credit will be reflected in the price of the new position assigned during rollover.  This is why you will notice a small difference in price from the original position you had before rollover and the new position assigned during rollover (depending on whether you received a debit or credit).   

Wednesday rollover is used to compensate for Saturday and Sunday interest that is unaccounted for while the markets are closed on those two days.  Any open spot positions held at rollover on Wednesday will experience three days worth of credits or debits in the account.

*Please note:  We have given a general rollover interest calculation below but please note that the actual interest credited or debited, the actual time of rollover, FCM rollover fees and general rollover policies often vary from FCM to FCM.  Also note that the calculation below does not take into account any fee that the FCM may charge for rolling over positions on behalf of the client.  The example below is for educational purposes only.

Rollover example: if you are long 100,000 EUR/USD at rollover, EUR/USD at rollover is trading at 1.1800, EUR short-term interest rate is 2.25% and the USD short-term interest rate is 4.00%, the theoretical rollover calculation would be as follows:

     contract notional value  x  (base currency interest rate - quote currency interest rate)  /  365 days per year  x  current base currency rate  =  daily rollover interest debit/credit

     Therefore:     100,000  x  (2.25% - 4.00%)  /  365  x  1.1800  =  daily rollover interest debit/credit 

     Further:     100,000  x  -1.75%  /  365  x  1.1800  =  -$5.66 rollover debit to your account 

     Since you are long a base currency (EUR) bearing a lower interest rate than the quote currency (USD), you pay rollover.

*The above calculation is an example only and is to be used for educational and informative purposes only.

Current short-term interest rates for more common currencies:       

CENTRAL BANK RATES
	USD  5.00%		CHF  1.50%
	EUR  2.75%		CAD  4.25%
	GBP  4.50%		AUD  5.75%
	JPY  0.15%		NZD  7.25%

CFOS/FX is a futures and forex broker offering online forex trading platforms in both spot forex and forex option trading markets as wells as OTC spot gold, OTC spot silver and commodity futures.  The professionals at CFOS/FX broker forex spot contracts and broker forex option trading for both individual and commercial futures and forex clientele.  CFOS/FX, as an entity, acts only as a futures and forex brokerage and does not actively manage futures or foreign currency trading accounts for clients.  Regarding forex markets, CFOS/FX is a forex option broker and a spot forex broker acting an the Introducing Broker; CFOS/FX does not act as counter-party for client forex trading or forex option trading.