Rollover

Rollover is the process of moving an open position over another day. This is done automatically by the provider broker when the rollover period is reached. And the interest (Swap) of the position held over the day will be calculated. which will both earn interest and pay interest.

Actually, rollover can be done on a variety of financial products. Not only currencies but all products traded in the form of CFD (Contract for Difference) have a rollover period for all contracts such as Forex, Share CFDs, Indices , Futures and Options. Rollover is operated by brokers or CFD providers. To maintain open positions or to move existing positions to a new period before the contract expires. as well as to avoid closing and opening new positions or avoiding trading taxes. This will provide both automatic and non-auto rollover. It depends on the type of financial product and CFD provider.

For the forex market, rollover takes place automatically with a period of time of day changing based on the provider server’s time. During this period, interest is calculated, known as the swap. Each currency pair an investor trades receives interest and pays interest. where investors can check the swap fee and the date the swap will be charged. which have different rates each day. Through the Metra trader 4 (MT4) platform, go to the Market Watch window, select the pair of interest. then right click select Specification You will find the words Swap long , Swap Short , and 3-Days Swap , which are the interest on the Buy side, Sell and the 3x day interest respectively.