Trading around rollover: how do you time the 5 p.m. New York window?
The daily rollover brings a spread-widening pause that catches unaware traders. For a strategy, it's a scheduled cost — or a scheduled avoidance — and the plan should say which.
What's your rollover rule?
- whether you trade through the window
- how spreads change your stops and targets there
- the rollover surprise you once ate
The sessions guide and trading costs guide explain the window.
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.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…