Immediate currency trades are conducted through the FX Spot market. The term “Spot” refers to the standard settlement convention of two business days after the trade date (T+2) ¹.  The settlement period refers to the amount of time allotted to both parties to satisfy the trade’s obligations.

FX Spot trades do not settle at Totality. Instead, open positions held at the end of a trading day (17.00 Eastern Standard Time) are rolled forward to the next available business day².

The rollover is made up of two components: the Tom/Next swap points (Forward Price) and the Financing of unrealised profit/loss (Financing Interest).

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i. Tom/Next swap points (Forward Price)

A currency’s Bid/ask interest rates are derived from swap points, quoted by Tier-1 banks. Specific mark-ups are added to the derived interest rates, which are then used to calculate swap points for each currency pair. The opening price of positions being rolled to the next business day is therefore influenced by these swap points².

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ii. Financing of unrealised profit/loss (Financing Interest)‍

Unrealised profit/loss on rolled positions are subject to an interest credit or debit. The unrealised profit/loss is calculated as the difference between a position’s opening price (possibly corrected for previous Tom/Next rollovers) and the Spot price at the time of the rollover.

A mark-up corresponding to +/- 2.00% is applied to the daily market overnight interest rates. The final rate is used to adjust the opening price of the position⁴.

Example: A client buys 100,000 EURUSD Spot on Monday, and Sells 100,000 EURUSD Spot on Tuesday.

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¹ _{The standard settlement convention of T+2 is applicable for the majority of currency pairs, but some adhere to T+1 settlement.}

² _{The global market convention is that the value date rolls forward at 17.00 Eastern Standard Time. However, there are exceptions to this rule, e.g., NZD rolls forward at 07.00 New Zealand Daylight Time.}

³ _{An additional +/- 0.30% mark-up is applied to Mexican Peso (MXN), Russian Ruble (RUB), Turkish Lira (TRY) and South African Rand (ZAR) currency crosses.}

⁴ _{Applicable to the default rollover methodology.}

⁵ _{From a Best Execution perspective, the market price for each currency is observed in the trading session with the best average liquidity. This means that market prices in all currencies, except SGD, HKD, CNH, THB, are observed in the European session between 08.00 and 10.00 GMT. For SGD, HKD, CNH and THB, market prices are observed at 14.00 Hong Kong Time.}

⁶ _{The opening price of the position is adjusted by the Forward Price and Financing Interest, at which time unrealised profit/loss is available to view in Positions module.}

Crypto FX positions do not settle into physical crypto. Instead, any open Crypto FX positions held at the end of a trading day (17.00 Eastern Time) are rolled forward to the next available business day, depending on the fiat currency.

The rollover is made up of two components; the Tom/Next swap points and the Financing of unrealised profit/loss (Financing Interest).

1. Tom/Next swap points
   The overnight financing rate applied to Crypto FX positions is determined by various factors, including the crypto lending market, the futures market and general market conditions. The interest rate differential between the crypto funding rate and the interest rate on the fiat currency influences the Tom/Next swap points.
   
   The current Crypto FX funding rate applied is 15% p.a. for long positions and 0% for short positions, plus/minus an interest rate markup of +/-3.45% (classic clients)or +/-2.33% (First clients). The final rate is used daily to adjust the opening price of the position.
   
   If the crypto funding rate for long positions exceeds the 15% p.a. level, Totality will instead use a floating rate equal to the prevailing market funding rate. The final rate consisting of the crypto funding rate and the interest rate markup is used to adjust the opening price of the position.
2. Financing of unrealised profit/loss (Financing Interest)
   Any unrealised profit/loss on rolled positions are subject to an interest credit or debit. The unrealised profit/loss is calculated as the difference between a position’s opening price (possibly corrected for previous Tom/Next rollovers) and the Spot price at the time of the rollover.
   
   The rate is calculated based on the daily market overnight interest rates, plus/minus a markup corresponding to +/- 2.00%. The final rate is used to adjust the opening price of the position.