Rollover (rollover) on Forex.

Any trader who has to roll over an open position to the next day is bound to encounter this concept, so it is important to know what a rollover actually is and take its size into account when trading.

Rollover is an indicator of the difference between the interest rates of the currencies that form the currency pair used in the transaction. It can have both positive and negative values ​​depending on the size of the bets and the direction of the transaction.

Most traders are familiar with this term as forex swap , which is used by any of the currency brokers.

Any currency pair is formed by two currencies, each of which has its own lending rate and deposit interest.

Therefore, when carrying out an operation, you have to take one currency on credit, and deposit interest is calculated on the second. If the operation is completed within one day, then the indicators of these rates can be ignored, but it is not always possible to close the transaction in the allotted time at a favorable price. This is when the rollover should be calculated. You can find out the approximate size of such bets on various trading instruments in the article “ Karry trade ”, which also contains a description of the trading strategy of the same name.

Typically, the Rollover size fluctuates within one percent, which does not allow you to significantly influence the financial result of the operation, for example, if you trade such a popular currency pair as EURUSD, then the commission for opening short positions is -0.09%, and the reward for long positions will be +0.04% per annum.

By dividing this indicator by 365, you will find out how much you will have to pay (or be able to receive) when transferring the transaction to the next date. For example, your deposit is $1,500, leverage is 1:100, the volume of an open trade for sale is 1 lot or 100,000 euros, the difference between rates is 0.9% per annum, the current rate is 1.30, we make a simple calculation: (

100 000 x (-0.9)/100) x 1.30/365 = - 3.20, that is, in order to maintain this position you will have to pay 3.2 dollars every day, which you will agree is not so much when trading with a volume of 1 lot.

In this case, a purchase transaction, on the contrary, can be positive and you will receive additional profit.

But it should be taken into account that it is currency pair that has the lowest rollover size; on other instruments it can be several times larger.