Glossary thread: what does rollover actually mean?
"Rollover" comes up in every broker's documents, but explanations are usually written for professionals. Around 5 p.m. New York time, positions held open are rolled to the next value date and the swap is charged or credited.
If the term confused you, post here. And if you can explain rollover, or any other trading term, in one plain sentence, that's the kind of answer beginners keep coming back to.
The trading costs guide has a plain-language section on the daily rollover.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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