Rolls for Forex

What is Rollover?
Restructuring of interest paid or accrued to hold a position overnight. Each of the exchange rate is tied, and because the Forex is sold in pairs, each operation is associated not only two different currencies, but two different rates. If the interest rate on the currency you bought is higher than the rate of interest in the currency sold, and the restructuring gain (positive roll). If the interest rate on the currency you bought is lower than the rate of interest sold currency to pay for restructuring (negative roll). Rollover can add significant additional costs or profit on the trade.


When you buy the EUR / USD, you buy the euro and sell the U.S. dollar to pay for it. If the euro interest rate is 4.00% and U.S. rates is 2.25%, you buy the currency with higher interest rates, and increase its working capital - about 1, 75% on an annual basis. If you sell the EUR / USD, sell the currency with lower interest rate and you must pay the capital - about 1.75% on an annual basis because the interest rate paid in euros and win U.S. interest rates.

When is rollover booked?

17 hours in New York is considered the beginning and end of day trading currency. All positions are open at 5 are considered to be held overnight, and are subject to renewal. A position opened at 5:01 pm is not subject to a change the next day, while a position is opened at 4:59 pm ET subjected to an investment of 17 hours of credit or debit card for every position open for 17 hours appears in your account within an hour, and is applied directly to your account balance.