Overnight policy - SWAP

An overnight index swap (OIS) is an over-the-counter derivative in which two parties agree to exchange, or swap, for an agreed period, a fixed interest rate determined at the time of the trade for a floating rate that will vary over time.

Market participants predominantly use the overnight index swap (OIS) market for hedging activities, which are often related to risk management. Specifically, participants can use the overnight index swap (OIS) to hedge either their funding costs or their exposure to short-term interest rate movements.

Trendoks Overnight Policy aspires to provide attractive cost of carry conditions to our clients in order to strengthen the company's leadership in Forex industry. The overnight policy basically describes the process of rollover of any existing exposure to the next settlement if it is necessary to avoid cash delivery and receipt of the currencies involved. Each day at the end-of-day settlement time, open exposures are swapped to the next settlement date.

The process consists of simultaneously closing the existing exposure at the daily close rate , and opening the same for the next settlement date [swap far leg] at the cost of carry price. Clients are able to see the impact of the cost of carry process in the various reports. While cost of carry points are readily shown in the position report, both near and far legs of the swap transaction are shown in intraday and portfolio statements, the near leg being labeled as "rollover close", and the far leg as "rollover open".

Please note that Trendoks has all the rights to alter these charges if necessary without the consent of the client.

Below is a list of our major currency pairs and their long/short positions swaps.