What is Rollover?
Rollover is the interest paid or earned for holding a position overnight. Each currency has an interest rate associated with it, and because forex is traded in pairs, every trade involves not only two different currencies, but their two different interest rates. If the interest rate on the currency you bought is higher than the interest rate of the currency you sold, then you will earn rollover (positive roll). If the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay rollover (negative roll). Rollover can add a significant extra cost or profit to your trade.

Rollover Example
When you buy the EUR/USD pair, you are buying the euro, and selling the U.S. dollar to pay for it. If the euro interest rate is 4.00%, and the U.S. rate is 2.25%, you are buying the currency with the higher interest rate, and you will earn rollover–about 1.75% on an annual basis. If you sell the EUR/USD pair, you are selling the currency with the lower interest rate, and you will pay rollover–about 1.75% on an annual basis–since you are paying the euro interest rate and earning the U.S. interest rate.

When is Rollover Booked?
The beginning and end of the forex trading day is considered to be 5 p.m. in New York (generally 22:00 in London). Any positions that are open at 5 p.m. sharp are considered to be held overnight, and are subject to rollover. A position opened at 5:01 p.m. is not subject to rollover until the next day, while a position opened at 4:59 p.m. is subject to rollover at 5 p.m.

A credit or debit for each position open at 5 p.m. appears on your account within an hour, and is applied directly to your accounts balance.

Weekends and Holidays
Most banks across the globe are closed on Saturdays and Sundays, so there is no rollover on these days, but most banks still apply interest for those two days. To account for that, the forex market books three days of rollover on Wednesdays, which makes a typical Wednesday rollover three times the amount on Tuesday. There is no rollover on holidays, but extra days worth of rollover are booked two business days before the holiday. Typically, holiday rollover happens if any of the currencies traded has a major holiday. Therefore, Independence Day in the USA, July 4, closes American banks, and an extra day of rollover is added at 5 p.m. on July 1 for all U.S. dollar pairs.

Where is Rollover Displayed?
The FX Trading Station platform displays rollover rates for each currency pair within the “Dealing Rates” window.

Please be advised, interest rates are provided to ODL by multiple global banks. Every effort is made to display rollover rates one day before they are posted to your account. However, during times of extreme market volatility, rates may change intraday.