Can anybody explain what rollover fees are in Forex? I know they are the differences in overnight rates, but I still don't understand them. I saw a chart that have different values for each currency pair, why are some...
Announcement
Collapse
No announcement yet.
Forex Rollover?
Collapse
X
-
If you e.g. open a long EURUSD, you are selling USD and buying EUR for that $ amount
So you have to pay for your $ selling (leverage...you're "lending" money from your broker) and get the interest for your € (at least in theory) that you bought
Depending on the rate differential and the direction of the trade the sum of interests will either be negative or positive (in theory € interest paid should be higher than $ interest owed -> positive swap for a long position)
So for each currency pair there are two values: the swap for a long position and the swap for a short position
If the swap is >0 you will earn money if it's <0 you have to pay for holding the position overnight
But the broker isn't your friend and he's not interested in you holding a position only to get the positive swap...
So some of them (most of them?) set both sides negative (with the exception of some high differentials like aud or the exotics like zar)Last edited by iwjw; 04-05-12, 18:41.
-
Hi guys !!!i were to go long on one account and short on the second account on the same currency? The goal is to collect the rollover interest after a week. It seems like a strategy that's too good to be true. This forex rollover information for everyone which interested in forex...Last edited by Aiden; 17-12-12, 03:42.
Comment
Top Active Users
Collapse
There are no top active users.
- amibroker (17)
- astrology (16)
- binary options (21)
- broker (22)
- elliott wave (23)
- eurusd (20)
- expert advisor (32)
- forex (191)
- forex analysis (24)
- forex broker (15)
- forex trading (44)
- futures (15)
- gann (29)
- gold (19)
- indicator (44)
- mt4 (19)
- ninjatrader (20)
- options (30)
- price action (22)
- scalping (19)
- system (27)
- technical analysis (15)
- trade (25)
- trading (91)
- trading forex (16)
Comment