Forex Swap/Rollover Policy
Rollover is also called Swap. It is the interest paid or for holding a position overnight. Each world currency has an interest rate connected to it. Since forex is traded in pairs, every trade involves not only two different currencies, but also 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 depending.
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 1.00%, and the U.S. rate is 0.25%, you are buying the currency with the higher interest rate, and you will earn rollover -- about 0.75% on an annual basis. Conversely, you sell the EUR/USD pair, you are selling the currency with the higher interest rate, and you will pay rollover -- about 0.75% on an annual basis, since you are paying the euro interest rate and earning the U.S. interest rate.
Rollover Booking Times
The beginning and end of the forex trading day is considered to be 9 PM (GMT) by our servers.Any positions that are open at 9 PM (GMT) sharp are considered to be held overnight, and are subject to rollover. A position opened at 9:01 PM (GMT) is not subject to rollover until the next day, while a position opened at 8:59 PM (GMT) is subject to rollover at 9 PM (GMT).
A credit or debit for each position opened at 9 PM (GMT) will appear in your account and is applied directly to your account balance.
Weekends and Holidays
Most banks across the world are closed on Saturdays and Sundays, so there is no rollover on these days, but most banks still apply interest for Saturday and Sunday. To measure for this, the forex market books three days of rollover on Wednesdays, which makes a typical Wednesday rollover three times the amount. Please note that for some instruments triple swap is applied on Friday. There is no rollover on holidays, but there is an extra days worth of rollover two business days before the holiday. Typically, holiday rollover happens if any of the currencies traded has a major holiday. Therefore, President’s in the USA, February 21st, closes American banks, and an extra day of rollover is added at 9 PM (GMT) on the previous working day for all U.S.D pairs.
Where is Rollover shown?
To view today's forex rates, simply click on the following link : Forex trading details
To view today's metals/oil rates, simply click on the following link : Metal/Oil trading details
To view today's indices rates, simply click on the following link : Indices trading details
Please note the Rollover Rates may vary from Broker to Broker