Forex rollover rates

Forex rollover rates rollover rates and policies vary from broker to broker? 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. The FXCM Trading Station automatically calculates and reports all rollover for you.

USD pair, you are buying the euro, and selling the U. If the euro interest rate is 4. USD pair, you are selling the currency with the higher interest rate, and you will pay rollover — about 1. One of the most popular forex strategies in the twenty first century has been the “Carry Trade”. The “Carry Trade” takes advantage of both the differences in interest rates between countries and the high available leverage of the forex market.

Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors. New York is considered the beginning and end of the forex trading day. Any positions that are open at 5 p. A position opened at 5:01 p. A credit or debit for each position open at 5 p.