Deals done on FXDirectDealer are not for delivery but for hedging and speculative purposes, so open positions at the end of the business day must be rolled over to the next spot date. For FXDirectDealer, the rollover will occur on all open positions at 5:00 p.m. EST.

When a position is rolled over, all open positions are in effect closed and reestablished for value the next business day (in FX terms, the next available spot date). The interest rate differential of the base currency versus the counter currency will determine whether a net debit or credit is applied to the client's account.

For example, if a client is long EUR/USD currency pair, it implies owning EUR and being short USD. If short-term interest rates are higher for the EUR versus comparable US interest rates, a holder of EUR would earn that higher rate and pay the lower US rate when rolling over a spot position.

As a result, being long on a currency that has higher interest rates will result in a credit adjustment to a client's account. Conversely, being long on a currency with a lower interest rate will result in a debit adjustment to the client's account.

FXDirectDealer will make a debit or credit adjustment for each open currency pair at the end of each business day. Positions that are open past 5:00 p.m. EST will result in an automatic adjustment to the client’s account and will appear in corresponding client reports.

NOTE: Since open positions over a weekend need to be rolled from Friday to Monday (or 3 days), the debit or credit will be three times the normal amount. Also, if there is a holiday, the rollover amounts will also be affected. Finally, end of year or end of quarter periods can result in rollover debits or credits that can be higher or lower than normal -- spot interest rates can be particularly volatile resulting in a wider or narrower interest rate differential for the currency pair.