What Does Rollover Mean in Forex?

Rollover in Forex

Rollover refers to one of the technical terms used in Forex trading. If you want to trade and invest in the Forex market, you need to know about all the technical terms. The conscious investment will bring you the chance to earn money. You may face the risk of losing the money you invested in any unconscious investment. One of the terms you should pay attention to is ‘Rollover’’. In the Forex market, it means holding an open position overnight.

How Does Rollover Work in the Forex Market?

Although rollover is one of the technical terms, it is possible to carry out a transaction in this direction in the market. So how to rollover in the market? Consider a transaction, its start and end dates are specific. An expression in the form of maturity results comes up. It means not closing the maturity date, that is, not giving an order to close at the end of the maturity, keeping the position open, and rolling over. If the position is not closed, the current contract will continue at the same rate and size, that is, the same liquidity. It has been defined as the realization area of ​​this application.

Is It Possible to Win with Rollover in the Forex Market?

In the transactions that you will continue without closing the position, you can also have the chance to earn an extra interest by making an extra rollover. What is decisive here? The determining factor here is the interest rates. If there is a change in interest rates, your gain will appear, that is, it will increase or your loss will increase. The biggest advantage that will give you is undoubtedly the interest profit. If you have acted on an interest rate and made a sale, and there is an interest rate higher than the rate you sell, your rollover position will be on the increase. If the opposite happens, then you will start to lose money in negative values. 

It is one of the technical terms that should be paid attention to. In particular, following the economic calendars and the instant rate changes should not be forgotten.

SEE ALSO: What Is Forex Portfolio Management?

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Caroline Tetra

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