Rollover is the interest rate differential applied when you hold a forex currency pair overnight. It represents the cost or benefit of holding a position across the end of the trading day, determined by the interest rates set by the central banks of the two currencies in the pair.
How rollover works
When you hold a long (buy) position, if the base currency has a higher interest rate than the quote currency, you receive a positive rollover—a credit to your account. If the base currency has a lower interest rate, you pay a negative rollover. For short (sell) positions, the calculation reverses. The exact amount depends on your position size and your broker's rollover rates, which can vary between brokers.
When rollover occurs
Rollover is applied at the end of the trading day, typically around 5:00 PM New York time, though this may vary by broker. Positions held over the weekend incur higher rollover costs than usual trading days.
Impact on trading
For short-term traders, rollover may be negligible; for position traders holding overnight, it can meaningfully affect profitability. Because interest rates are set by central banks and can change, rollover rates are unpredictable and may shift with monetary policy decisions. Some traders use rollover as a strategy—seeking positive rollover on certain pairs—while others actively avoid negative rollover.
