In plain English
What Forex rollover means
Spot currency trades are normally structured for near-term settlement rather than indefinite holding. A retail broker can keep a position open after its daily cutoff by rolling its value date forward. The resulting account adjustment reflects short-term funding conditions for the two currencies, the position direction, and the broker’s stated methodology or markup. It is separate from profit or loss caused by exchange-rate movement.
Why it matters
A forex rollover can materially affect the total result of a position held for several days or weeks, even if the currency pair’s market price barely changes. The adjustment may be positive or negative for either a long or short position. Broker cutoff times, holiday calendars, and the treatment of weekend settlement days can also change the amount charged or credited.
Example
Assume a broker displays a daily rollover rate of -$8 for a long 100,000-unit EUR/USD position. If the trader holds it through one ordinary rollover cutoff, $8 is debited from account equity. If Wednesday’s rollover is shown as triple, the simplified debit is $24 because the settlement date is moved across the weekend. Price gains and losses are not included in this example.
Quick answers
Common questions
When is forex rollover applied?+
It is generally applied when an open position remains in place at the broker’s daily rollover cutoff. The exact time, eligible instruments, and treatment of orders or positions opened near that cutoff are set in the broker’s customer agreement or product specifications.
Why can Wednesday rollover be larger?+
Many spot FX pairs conventionally settle two business days after trading. A Wednesday rollover commonly moves the value date from Friday to Monday, so the adjustment may reflect three calendar days. Holidays and pair-specific settlement conventions can produce different timing.
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