If you have an open position on your OANDA trading account at the end of each trading day (at 5 p.m. (ET), the position is considered to be held overnight and will be subject to either a ‘financing cost’ or ‘financing credit’.
The ‘financing cost’ or ‘financing credit’ is calculated on a per position basis and may be a debit or credit, depending on whether it is a buy/long or sell/short position. The cost or credit also takes into account the impact of our admin fee and reflects the interest differential between the currencies involved in this trade.
The credit or debit depends on the applicable funding rate as described below:
Funding rates (or swap rates) vary depending on instrument and may change on a daily basis. These are quoted as an annual rate. Each instrument has two quoted rates: one for a buy/long position and the other for a sell/short position.
A negative funding rate will result in a cost being debited from your account, while a positive funding rate will result in a credit made into your account.
The daily financing charge or credit will be claimed/passed from/to your account each day, and will be visible in your transaction history accessible via your account portal.
Our funding rates for forex consist of a blend of underlying liquidity providers’ tom-next swap rates, adjusted by our x% admin fee (annualized).
|CZK, HUF, SAR, THB, ZAR pairs
FX trades are typically settled on a T+2 basis, and the funding rate reflects the cost to push forward the settlement date by one day, so you can hold the position indefinitely. If you hold a position on Wednesday at 5 p.m., the funding rate will typically be three times the amount to reflect pushing forward the settlement by three days instead of one day.
This is because at the end of Wednesday the settlement date needs to be pushed forward from Friday to Monday, and the funding rate reflects the cost to hold the position over the weekend. There are no financing charges or credits on Saturday or Sunday. The actual funding rate on any given date may reflect more than one day depending on the instrument or due to market holidays.
Rates and costs for today's date are approximate and will not be finalized until 5 p.m. ET.
*Long financing charge = the financing charge in USD on a 100,000 unit long position of the given instrument.
^Short financing charge = the financing charge in USD on a 100,000 unit short position of the given instrument.
Example of how the financing cost would be calculated if you had a long 100,000 EUR/USD trade open at 5 p.m. (ET) on a day in which the long rate was -3.00%.
Financing cost = (100,000 x 1.15826) x -3.00% x 1/365 = -9.52 USD.
What are the financing costs for OANDA Corporation clients?
If you have an open position on your account at the end of each trading day (5 p.m. ET), the position is considered to be held overnight and subject to either a ‘financing cost’ or ‘financing credit’ to reflect the interest differential between the currencies involved in this trade.
What are the inactivity fees applicable at OANDA Corporation?
An inactivity fee is a monthly charge that is levied on your account if there has been no trading activity for a period of 12 months. Please note, inactivity fees will not be charged when there is an open position.
How does OANDA calculate its funding rates?
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