What Does Rollover Interest Mean in Forex Trading?
A rollover interest in forex trading is the interest a trader earns or pays for holding any currency pair position overnight. In this, traders get an opportunity to profit or make a loss depending on how much they understand. The rollover concept is also extending the settlement period for any open position in the trade. A trader needs to take delivery of the currency two days from the transaction date in the forex market. Visit forex market hours Rolling Over any FX Positions In the case of long-term trading, a day trader can earn by trading from the positive side of a rollover equation. Traders can start by computing the swapping points. It is the difference between any currency pair's forward and spot rates. The calculations depend on the interest rate and imply investing in various currency pairs. It indicates close returns that can be equal, no matter the currencies' interest rates. Here, the traders can compute the swapping points per delivery date where they cons