Rolling daily trades provide a cost-effective solution for short-medium term trading. These daily trades do not automatically expire at the end of the day, but will 'rollover' into the next trading day. Any orders linked to rolling daily trades will also be rolled. An overnight financing rate will be applied on a daily basis. If you hold an open position at 23:30 London time then any relevant overnight financing charges and dividend charges will be applied to this position. The actual charge can be applied at any time after 23:30. The standard benefits of spread betting still apply, such as the ability to go long or short and tax free profits, as well as other benefits. The cost for rolling a trade can be worked out using the following formula:
F = (p / u) x s x i
b
F = overnight financing
p = closing price
u = bet unit risk
s = stake
i = applicable interest rate (RFR + 2% for long bets or – 2% for short bets)
b = day basis (365)
The Relevant Funding Rate (RFR) for Forex bets is generally equivalent to the base rate of the second currency minus the base rate of the first currency in a currency pair.
Tradefair Spreads also offers the facility to rollover futures contracts. If you chose to roll any quarterly or monthly contracts, you will need to contact us shortly before our expiry date to leave a rollover instruction. For equities, Tradefair Spreads will expire the existing trade spread free (at the market price) and offer the subsequent quarter at half of the spread. For indices, commodities and Forex contracts, Tradefair Spreads will expire the trade at our mid point and offer the subsequent quarter at the corresponding level. Please note that on rollover of futures contracts, the existing trade is closed, realising any profits or losses incurred and a new trade is subsequently opened.
Dividend adjustments are credited to long positions and debited from short positions held at the close of business on the day before the ex- dividend date. If you are long, you may receive 80% of the dividend and if you are short you may be debited 100% of the dividend. Payment is credited / debited to your account on the ex-dividend date. Dividend adjustments may also apply to index bets.