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Rollover: meaning in forex and gold trading

Rollover is the daily process of extending open positions to the next value date, when brokers apply swap charges or credits.

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Definition

Rollover: Rollover is the daily process of extending open positions to the next value date, when brokers apply swap charges or credits.

What happens at rollover

Spot forex settles two business days after the trade. Retail positions are not delivered, so at the end of each trading day the broker rolls them forward and applies a swap. Most brokers use 5pm New York time as the rollover point, which is also when the new trading day begins on many platforms.

Trading around rollover

Liquidity is thin for a short time around rollover and spreads often widen sharply for a few minutes. Stops placed very close to price can be triggered by that widening. Many traders avoid opening new positions in the minutes either side of rollover.

Worked example

A trader opens USD/JPY at 4pm New York time and closes at 6pm. The position crossed rollover, so a swap is applied even though it was open for only two hours.

Common mistakes

  • Opening trades just before rollover with tight stops.
  • Not realising a two hour trade can still incur a swap.

If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.

Swap (rollover)

A swap is the overnight financing charge or credit applied to a position held past the broker's daily rollover...

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Spread

The spread is the difference between the bid and ask price, and it is the basic cost of opening a trade.

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Liquidity

Liquidity is how easily a market can be bought or sold without moving the price; liquid markets have tight spr...

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Carry trade

A carry trade buys a higher yielding currency against a lower yielding one to earn the interest rate different...

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Tools and guides

Frequently asked questions

What time is forex rollover?

At most brokers 5pm New York time. Check your broker's specification.

Do I pay rollover on a trade closed the same day?

Only if the position was open over the rollover time.

Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.