What is “position transfer” and how is it calculated?
“Transfer of position” is the charge based on the swap number for the respective currency pair that will be charged at 24:00 if you have an open position in CFDs on currency pairs or precious metals to be transferred for the next day.
Note that swap numbers can be either positive or negative. In the first case, the transfer amount of a position is added to your account, while the second is deducted (deducted).
The amount you will pay or receive for an open position depends on the currency pair because the CFD transaction on a currency pair is a purchase of one against the sale of the other currency.
Transfer Position = (Swap Number / 10,000) × Position × Number of Days
When JPY participates in the currency pair:
Transfer Position = (Swap Number / 100) × Position × Number of Days
The amount so obtained is in the second currency of the currency pair. If your account is in a currency other than the pair’s second currency, the amount will be recalculated in the currency of the account at the respective exchange rate at the end of the day.
Example: You commit a “buy” deal for 1 CFD on EUR / USD (1000 units or 1 lot in Delta Trading, 0.01 lot in MetaTrader 4). This means you buy 1000 EUR and sell the equivalent in USD. This is called a “long” position. Conversely, if you make a “sell” deal for 1000 EUR / USD, that means you sell 1000 EUR and buy their equivalent in USD. This is called a “short” position.
If you remain in a long position of 1000 USD / USD (1 CFD) for the next business day, you get interest on your 1000 EUR bought, and you pay interest on the sold USD equivalent.
If you stay in a short position of 1 000 CFD for the next business day, you will receive interest on your purchased USD as equivalent, and you will pay interest on the 1000 EUR sold.
Interest rates are consistent with the practice of global financial institutions.
If the interest rate of the currency you purchased is higher than the one you sold, you will get the difference (the amount to transfer the position).
Conversely, if the interest rate of your purchased currency is lower than the one you sold, the difference will be deducted from your account.
The transfer amount of a position is charged to the final position that is transferred from the previous day.
Note that CFD transactions on currency pairs are made with a spot value date (T + 2 working days), ie:
When the position is opened on Monday (June 4, 2018), the spot value date is Wednesday (June 06, 2018) and the spot value date is on Thursday (June 07, 2018) in the daily statement for Tuesday (05.06.2018), you will be charged a transfer amount for one business day (06.06.2018 to 07.06.2018).
When the position was opened on Wednesday (06.06.2018) the spot value date was Friday (08.06.2018) and the closing date on Thursday (07.06.2018) was the spot value date on Monday (11.06.2018) and in the daily statement for Thursday (07.06.2018), you will be charged for the transfer of a position for three business days (07.06.2018 to 11.06.2018).
When the position is opened on Friday (08.06.2018), the spot value date is Tuesday (12.06.2018) and the spot value date is on Wednesday (June 13, 2018) and is closed on Monday (11.06.2018) and in the daily statement for Monday (June 11, 2018), you will be charged a transfer amount for a business day (from 12 June 2018 to 13 June 2018).