Transfer of position, pros and cons.

There's a constant debate among traders about whether or not to rollover positions overnight. Most players prefer intraday trading, but there are also many who favor longer-term trades.

Rollover on Forex, while requiring some expense, is sometimes essential to profit or avoid losses.

It all depends on the specifics of the trading, such as the trading instrument, leverage, and the current market situation.

Trading with low leverage.

Some traders, even with a sufficient deposit, prefer to trade with virtually no leverage. This approach to trading minimizes the risk of losing their deposit, but also significantly reduces potential profit.

To achieve a significant profit in a single trade, the trend must move at least 100-200 pips, which rarely happens in a single day. Therefore, with this trading method, rolling a position over to the next day is essential. Moreover, the swap (rollover fee) is so small that it has virtually no impact on the financial outcome of the trade.

Scalping trading.

The main distinguishing feature of the scalping strategy is high leverage, which increases risk and requires constant monitoring of trades. Furthermore, the importance of swaps in relation to the trader's deposit increases significantly.

For these reasons, if you use leverage greater than 1:100 when trading Forex, it is not recommended to roll over positions to the next day.

Swap size.

Depending on the currency pair and the direction of the trade, the swap commission can vary significantly, and in some cases, it can even be positive, meaning you make a profit by rolling over the trade. There's even a strategy for making money using this method, described in the article " Carry Trade ."

Market influence:

Sometimes, to avoid losses or to secure additional profits, you're forced to roll over positions. The day is ending, and all signs point to a favorable outcome, forcing you to hold on to the trade and wait for the desired result.

To avoid such situations, try to close all open trades a few hours before the end of the day.