Thread: Forex Rollover FAQ

Rollover FAQ

Please click on the appropriate link below to view the answer to your question:

• What is rollover? Click here.
• When is rollover booked? Click here.
• Are trades held over the weekend affected by trade rollover? Click here.
• Where is rollover shown? Click here.
• Do rollover rates and policies vary from broker to broker? Click here.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!

What is Rollover?

Rollover is the interest paid or earned for holding a position overnight. The target interest rate associated with each currency (generally set by that currency’s Central Bank) is listed on our research website www.dailyfx.com

Here is an example of the rollover rates (on the bottom right of the page):



Each currency has an interest rate associated with it, and because forex is traded in pairs, every trade involves not only 2 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.

Here is an example of how Rollover works:

When you buy the EUR/USD pair, you are buying the Euro, and selling the US Dollar to pay for it.

If the Euro interest rate is 4.00%, and the US rate is 2.25%, you are buying the currency with the higher interest rate, and you will earn rollover -- about 1.75% on an annual basis.

If you sell the EUR/USD pair, you are selling the currency with the lower interest rate, and you will pay rollover -- about 1.75% on an annual basis, since you are paying the Euro interest rate and earning the US interest rate.

Feel free to take a look at our rollover article on DailyFX by clicking here.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!


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When is rollover booked?

Rollover is booked at 5pm ET (New York Time) in the US. Currently New York time is GMT -5, so Rollover occurs at 22:00 GMT time. However, when daylight savings changes, this will change to 21:00 GMT. Nevertheless, Rollover always occurs at 5pm ET (New York Time).

Rollover is the same time that the trading day starts and ends. Any position held at exactly 5pm ET is subject to debit/credit for rollover. If you open a position at 5:01pm ET, or close a position at 4:59pm ET, those positions would not incur rollover. Only positions held at 5pm ET (New York Time) will be debited/credited rollover.

Feel free to take a look at our rollover article on DailyFX by clicking here.

Feel free to take a look at our market hours article on DailyFX by clicking here.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!

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Are trades held over the weekend affected by trade rollover?

Yes, rollover applies on weekends. However, spot forex transactions technically have a 2-day settlement period, therefore the weekend rollover is accounted for 2 days later, on Wednesday. Also, if there is ever a national holiday, where banks in that country are closed, there is generally 0 rollover applied to that countries currency pairs. For example, if there were a US holiday on a Monday, there would likely be no rollover on that Monday, and twice normal rollover on Tuesday. Click here to see our rollover calendar.

Another thing to note is that the rollover available on the Trading Station II is for the upcoming 5pm ET (New York Time) debit/credit. This means that from 5:01pm ET on Tuesday through 5pm ET on Wednesday, the rollover amount you are going to see is Wednesdays (triple) rollover.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!

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Where is rollover shown?

Rollover is available in two places on the Trading Station II platform. First, in the Advanced Dealing Rates window:



Second in the Simple Dealing Rates window:



Keep in mind that the rollover available on the Trading Station II is for the upcoming 5pm ET (New York Time) debit/credit. This means that from 5:01pm ET on Tuesday through 5pm ET on Wednesday, the rollover amount you are going to see is Wednesdays (triple) rollover.

Where can I see a calendar of rollover? What if there are holidays?

We provide a Rollover calendar for simplicity and transparency. Please click here to see the rollover calendar.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!

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Do rollover rates and policies vary from broker to broker?

Yes, Rollover policies can vary from broker to broker. As a No-Dealing Desk broker, FXCM works over 10 liquidity providers to get the best available bid/ask price for you. This also applies to the rollover rates that are applied to positions at 5pm ET (New York Time).

If you have additional questions about how rollover works, please post your question and we will reply with an answer!

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I have been holding a buy trade for the NZD/USD, the rollover has been fluctuating at about 3.00+, but that is usually not reflected on the account!. I just checked my account and the rollover for yesterday was 4.02 but that has not been applied to my account. I checked the report and it said 3.24 was posted at statement time... but posted where? The balance in my account did not move by even 1.00. I have been watching this for a couple of weeks and this has been the general trend. Did I miss something? Is it that only a fraction of the rollover should be paid?

Thanks for any help.

Originally Posted by fxcharm

I have been holding a buy trade for the NZD/USD, the rollover has been fluctuating at about 3.00+, but that is usually not reflected on the account!. I just checked my account and the rollover for yesterday was 4.02 but that has not been applied to my account. I checked the report and it said 3.24 was posted at statement time... but posted where? The balance in my account did not move by even 1.00. I have been watching this for a couple of weeks and this has been the general trend. Did I miss something? Is it that only a fraction of the rollover should be paid?

Thanks for any help.

Hello Fxcharm, thanks for posting!

Rollover certainly can be a bit confusing at times, and I would be happy to help clarify exactly how it will work for you!

Where can I find what I will earn or pay in rollover on a position?

On the FXCM Trading Station II platform, we've made rollover quick and easy to find by including the day's rollover rates right on the Advanced Dealing Rates window for every currency that is offered. This amount is what you will earn or pay in rollover each day per lot. As an example, I've taken a snapshot of the NZD/USD Advanced Dealing Rate from today:

As you can see from the Advanced Dealing Rate window, you will earn rollover of $0.39 per 10k contract that you purchase of the NZD/USD and you will pay $0.86 per 10k contract that you sell of the NZD/USD. If you happened to be looking at an account with a minimum contract size of 100k, the rollover amount would simply be 10x larger (since the contract size is 10x larger) or approximately $3.90 per 100k contract.

When will rollover be applied to my account?

Rollover is calculated on any positions that are held at 5:00p EST and applied to the account shortly after. You may not see the rollover post to the account immediately at 5:00p, but within about 15 or 20 minutes, it will be added or removed from your account balance.

How can I view the amount of rollover applied each day?

Viewing the rollover amount that is applied each day is quick and easy with the account reporting tools that are available with every FXCM account!

Step 1: To run a report from your account at any time and for any time period, click on Trading at the top of the platform, then Accounts, and finally on Reports.

Step 2: Next, select your time frame and click on Run Report.

Step 3: Scroll down to the Account Activity section and you will be able to view the line item for each rollover period!

Are there trading strategies built around rollover?

Absolutely! The carry trade is a popular trading strategy used in the forex market whereby speculators buy high-interest-rate-bearing currencies and sell currencies with low interest rates.

These positions ensure that roll-over interest will be posted to the trader's account each trading day.

Below is a chart illustrating a typical example where the carry-trade strategy could be applied. The chart shows a steady increase of the GBP/JPY pair in 2005 and 2006, spawned, among other things, by carry traders going long to obtain the interest-rate differential.

Where can I learn more about the Carry Trade or other strategies?

Every FXCM Live account gains access to the DailyFX+ Forex Trading Courses that contain over 60 videos and 14 different strategies, including an entire section devoted to the Carry Trade!

If you don't currently have a live account, take a moment to register for a trial login to see everything that we have to offer!

If you have any other questions, please do not hesitate to post a reply or contact me directly at charles@dailyfx.com!

Where can I see rollover on the Trading Station II?


The Trading Station II platform provides complete transparency for rollover rates. You can clearly see the rollover rate (interest paid or earned) on the Trading Station platform in the Simple Dealing Rates window:



When does this happen?

Rollover is paid or earned at 5pm ET every day. Remember that Wednesdays are triple rollover, and there can be holidays that change the normal rates. Click here for the complete calendar of rollover rates. Forex @ DailyFX - Rollover Calendar | Forex Education

What is the difference between Roll S and Roll B?

Roll B is what you will pay or earn if you are in a long (buy) position.
Roll S is what you will pay or earn if you are in a short (sell) position.

Do keep in mind that these numbers are in dollars and cents, not PIPs.

If you have additional questions about how rollover works, please post your question and we will reply with an answer!