Trader's Glossary


In Forex trading a rollover occurs when a position is kept open overnight without it being settled (two days being the usual delivery date for Forex). For the position to remain open it must be closed and re-opened so that the scheduled delivery date is deferred for another day. Brokers automatically do this at the same price the position was initially opened at. Rollovers require a swap transaction to take place where the difference between interest due on the currency borrowed and due to the currency bought is settled.