What is a Roll-Over?
March 28, 2012 at 5:06 AM
Roll-Over Definition. A Roll-Over is a term that describes how a particular aspect of holding a security, commodity or currency may change over a specific time period cut-over. For securities, you may roll over a security at its maturity date by re-investing the funds in a new issue of the same or similar type. Retirement account positions when transferred are said to roll over. In the forex market, the term roll-over applies to the interest that is credited to an open carry account, which must be closed daily and reopened the next, or in other words, the spot trade date is swapped for the following day, sometimes referred to as tomorrow/next or tom/next. The roll-over for the carry trade account can also mean the actual interest payment for the one day, based on the net difference between the central bank rates in each respective currency. A triple rollover is given on Wednesday to make up for the two-day weekend. In some cases, there may be a charge for moving your forex position to the next delivery date, another use of the roll-over term.
Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.
Popular Forex Education Articles
Popular Currency Pairs
Still not convinced? Take the tour→
Follow us on:
Popular Articles
- Forex Scalping - Extensive Guide on How to Scalp Forex
- Trading Pegged Currencies Low Risk Fixed Currency Trades
- Martingale Trade Sizing and the Gambler's Fallacy
- Market Cycles and Currency Trading
- Forex Price Action - Reading the Language of the Market
- Forex Oscillators - The Predictive Value of Divergence and Convergence
- A Step-by-step Guide to Fundamental Analysis of the Currency Market
- Key Considerations When Choosing a Forex Broker
- Selecting a Good Forex Trading Platform
- Live Forex Trading Account Types





ahadrana 6 months ago
Currently, expecting range for next 1-2 weeks and again short...
BubbleOz 8 months ago
Short - only concern is if the gap will be filled; however think it will get smashed as EURope comes in.