Rollover is the interest paid or earned for holding a position overnight. Each currency has an interest rate associated with it, and because forex is traded in pairs, every trade involves not only two different currencies, but their 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.

Timing of Rollover

5 p.m. in New York is considered the beginning and end of the forex trading day. Any positions that are open at 5 p.m. sharp are considered to be held overnight, and are subject to rollover. A position opened at 5:01 p.m. is not subject to rollover until the next day, while a position opened at 4:59 p.m. is subject to rollover at 5 p.m.

A credit or debit for each position open at 5 p.m. appears on your account within an hour, and is applied directly to your accounts balance.

Please note: Rollover amount (Roll S and Roll B) on the platform dealing window is calculated per 10K trading volume while Pip Cost is calculated per 1K micro lot trading. You will receive or pay rollover if you hold a 1K position overnight and the amount will be equivalent to approximately one tenth of the amount displayed on the platform.

Weekends and Holidays

Most banks across the globe are closed on Saturdays and Sundays, so there is no rollover on these days, but most banks still apply interest for those two days. To account for that, the forex market books three days of rollover on Wednesdays. Likewise, there is no rollover on holidays, but an extra day's worth of rollover two business days before the holiday. Typically, holiday rollover happens if any of the currencies traded has a major holiday.

Note: On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-day" rollover accounts for settlement of trades through the weekend period.

The FXCM Trading Station automatically calculates and reports all rollover for you.

FXCM Interest Rate Rollover Schedule

Do rollover rates and policies vary from broker to broker?

Yes. In addition to our policy of transparency in reporting rollover, due to the average notional trading volume that FXCM generates to the banks it deals with, FXCM is able to pass to its clients outstanding rollover rates on both sides of every currency pair.