Glossary Term

Rollover

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Rollover is an interest rate payment that is either paid to or paid by forex traders when holding a position overnight. This takes place because when trading forex you’re essentially borrowing one currency in order to purchase another. Once a day this position is ‘rolled-over’, in other words the contract’s close is deferred for another 24 hours. When this is done the interest rate difference between the two currencies is either deducted or credited to the trader’s balance depending on which of the two currencies has a higher interest rate.

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What is rollover? A Traders Expert explanation

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