- What is a rollover
- How are the rollover rates determined?
- How do I view FOREX.com's rollover rates?
- When is rollover applied?
- Can I avoid paying rollover charges?
- What is the difference between an intraday position and overnight position?
- How are positions rolled on weekends and holidays?
- Why do rollover costs widen at the end of the quarter or year?
What is a rollover
Rollover rates (also known as a financing charge or swap rate) are based on the interest rate differential of the two currencies and the spot price, and is calculated according to whether the position is long or short. We source institutional rollover rates and pass these onto the clients at a competitive price.
However, rollover rates can be impacted by market conditions, especially at the end of a quarter or year. We periodically review our rollover rates and adjust them to fit with current market and industry conditions.
Each currency pair will have two rollover rates: one for short positions, another for long positions. Depending on the difference, your account will either be debited or credited a certain amount based on the rollover rate.
As a service to our customers, all open forex positions at the end of the day (5:00pm New York time) are automatically rolled over to the next settlement date. The rollover (or swap) adjustment is simply the accounting of the cost-of-carry on a day-to-day basis. We do not charge rollover on intraday trades.
How are the rollover rates determined?
Rollover rates are based on the interest rate differential of the two currencies and the spot price. However, rollover rates can be impacted by market conditions, especially at the end of a quarter or year.
We periodically review our rollover rates and adjust them to fit with current market and industry conditions.
How do I view FOREX.com's rollover rates?
Rollover rates can be found here. You can also access our rollover rates directly from our trading platforms.
FOREX.com Web Trading: In our web platform, you can view a market’s rollover on its Markets 360 tab. To open this tab, right click on the name of a market and select Market 360 from the dropdown. From there, rollover information can be found under the Financing Charge section.
FOREX.com Mobile Apps: In our mobile apps, you can view a market’s rollover on its Market Info tab. To open this tab, click on the name of a market and select the Info tab. From there, rollover information can be found under the Financing Charge section.
Advanced Desktop Platform: Click on the "i" icon next to a market in a Watchlist to view details on that market. Rollover information can be found under the Financing Charge section.
MetaTrader 4: Select the Company tab inside the Terminal window at the bottom of the platform. You will find rollover rates under the Profile section of the menu on the left. Rollovers are not accessible in the MetaTrader 4 mobile apps.
When is rollover applied?
At FOREX.com, rollovers are processed daily at 5:00pm ET, at which time any open positions will be rolled and a debit or credit applied to your account. We do not charge rollover on intraday trades.
Can I avoid paying rollover charges?
At FOREX.com, rollovers are not applied to intraday trades. No interest is paid or received if you open and close a position within the same trading day after 5pm ET and before 5pm ET the following day.
Other brokers may apply rollovers on a continuous, second-by-second basis. This policy may ultimately end up raising your total trading costs, especially if the broker's rollovers are not competitive.
What is the difference between an intraday position and overnight position?
Intraday positions are all positions opened anytime during the 24-hour period after the close of FOREX.com's normal trading hours at 5pm ET. Overnight positions are positions that are still on at the end of normal trading hours (5pm ET), which are automatically rolled by FOREX.com at competitive rates (based on the currencies' interest rate differentials) and applied directly to your account balance.
How are positions rolled on weekends and holidays?
At FOREX.com, rollovers for positions held over the weekend will be posted on Wednesday, as is standard in the industry. As a result, the rollover applied on Wednesday will be for three days of rollover interest.
A holiday rollover will occur when the currency traded has a major holiday and the banks are closed. A holiday rollover will typically be applied two days before the holiday.
Why do rollover costs widen at the end of the quarter or year?
The spreads on both rollover rates and STIRs (short-term interest rates) typically widen considerably at the end of each quarter. As a result, usually for a few days only, the daily charge can increase dramatically, causing visible spikes in the cost. Also, it is completely possible for currency pairs to charge rollovers for both long and short positions where they may not usually do so. This is a result of the underlying market spread rates (combined with any markups) straddling parity and reflects the increased costs that need to be paid in order for us to take the other side of positions.