Forex Indicators
Forex Rollover?
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 had different values for each currency pair, why are some positive and some negative? If this chart is accurate, should I just trade currency pairs with a positive rollover fee?
Public Comments
- If you hold a Forex position overnight, you pay or receive what is called a Forex rollover fee. The rollover fee is calculated by the difference in the Interest rate that applies to the two currencies in the currency pairs you are trading. If you buy a currency pair where the base currency has a higher interest rate than the terms currency, then you receive the rollover, and vice versa!
