A spot position is rolled forward with a tom-next swap
Table of Contents
1. Summary
An open spot position is carried to the next value date with a tom-next swap. The swap's points reflect the interest differential between the two currencies.
2. Detail
Brokers roll open positions at a daily cut-off, usually 5 pm New York time, and adjust the position with the tom-next points.
3. See also
- FX forwards — the structure note.
- FX Spot Revaluation Types — completes: other treatments of spot.
- Valuation spot date and overnight — completes: the short end the roll reads.
- Short-date swap points run between their own two value dates — exemplifies: tom-next in use.