FX Market Convention
Forex markets follow a T+2 settlement convention, meaning trades settle two business days after they are placed. Because markets are closed over the weekend, a position held open on Wednesday will settle on Friday — but if it rolls over again, the next settlement date skips Saturday and Sunday, landing on Monday. To account for this, Wednesday carries three days' worth of overnight funding fees in a single charge, covering Friday, Saturday, and Sunday.
Daily financing adjustment - FX interest (eg; AUD/USD assuming a client holds the positions past 0500hrs SGT throughout the week)
Holding past 2200hrs UKT (0500hrs SGT) on Wednesday - 3 days charge (for the weekend)
Holding past 2200hrs UKT (0500hrs SGT) on Thursday - 1 day charge
Holding past 2200hrs UKT (0500hrs SGT) on Friday - 1 day charge
Holding past 2200hrs UKT (0500hrs SGT) on Monday - 1 day charge
Holding past 2200hrs UKT (0500hrs SGT) on Tuesday - 1 day charge
Please note that actual trading times are governed by local time in the country of the index's origin. Consequently, seasonal adjustments (such as daylight saving) in either the UK or the country of origin may cause times shown to be imprecise.
When will I be charged for 4days worth of adjustments?
If there is a bank/public holiday during a business day, the FX trade may not settle on that day and will be rolled over to the next value date, in this case you may be charged FX interest or Daily admin to include the bank/public holiday as well.
Where are these daily financing adjustments recorded?
By navigating to "Profile" icon illustrated on the top-right corner with your initials > Click into "Documents" > "Transaction Statements" and select a custom date range