Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Web Trader MT5
All
Tom-Next
Tom-Next is the rollover adjustment applied when a spot foreign-exchange position is carried from one business day into the next. The name comes from “tomorrow-next,” the two settlement dates involved. The adjustment mainly reflects the difference between short-term interest rates in the two currencies. Holding the currency with the higher rate can sometimes create a credit, while holding the lower-rate currency can create a charge, although provider costs also matter. Wednesday rollovers often include extra days to account for weekend settlement. The number shown by a broker may be called swap, rollover, financing, or tom-next points.
Tomorrow Next
Tomorrow Next is the full written form of Tom-Next and tom/next. It does not describe a new trade idea. It describes the short foreign-exchange swap used to delay settlement by one business day. One side of the swap closes the position for tomorrow’s value date, while the opposite side reopens it for the next date. Retail traders usually do not arrange both transactions themselves. The broker applies the resulting rollover adjustment automatically when a position stays open past the daily cut-off. The three spellings refer to the same basic mechanism, although individual providers may calculate and label their charges differently.
Tomorrow next (tom/next)
A spot currency trade normally has a set settlement date. Tom/next is used to move that settlement from tomorrow to the following business day. It combines two opposite currency transactions with different value dates, allowing an open position to continue without the trader taking delivery of the currencies. The price adjustment reflects the interest-rate difference between the two currencies, along with market and provider costs. Depending on the position, this can create a small credit or charge. Weekends and holidays can make the adjustment cover more than one day. Tom/next is therefore part of the daily rollover process in foreign exchange trading.
TONAR
TONAR is an alternative name sometimes used for TONA, the Tokyo Overnight Average rate. TONA is the official name used by the Bank of Japan. It is based on unsecured overnight borrowing between financial institutions in Japan’s call-money market. “Unsecured” means the loan is not backed by specific collateral, and “overnight” means the money is borrowed for one business day. The rate is used as a Japanese yen risk-free reference in financial contracts. It differs from TIBOR because TONA reflects completed overnight transactions, while TIBOR is based on rates submitted by a panel of banks for several borrowing periods.
Tonga Pa’anga (TOP)
Tonga’s monetary unit is the pa’anga, divided into 100 seniti. Its international currency code is TOP, while local prices may use a dollar-style symbol. The National Reserve Bank of Tonga has the sole right to issue currency in the kingdom. The unusual name comes from a local word associated with a seed or nut that early islanders used in exchange. Tonga introduced the pa’anga in 1967 when it replaced the Tongan pound. Because several Pacific currencies use dollar signs, TOP is the clearest label for banking, travel, and international payment records.
Top of Book
The top of book is the best buying price and the best selling price currently visible in an order book. It also normally shows how much quantity is available at each price. If the highest bid is $20.00 for 500 shares and the lowest offer is $20.05 for 300, those two orders form the top of book. A market order larger than 300 shares may buy the first 300 at $20.05 and continue at higher prices. The top therefore shows only the first available layer, not all market depth. Prices and quantities can change rapidly as orders arrive, trade, or are cancelled.
Start trading with A globally leading broker
Want to start trading?
We use cookies to understand how you use our website and to give you the best possible experience. You can find out more by viewing our Cookie Policy.
