Rollover? You may have seen or heard this word many times in Forex trading, but do you really know what it means? 

Is it a bonus? Is it something you get or something you pay? Or maybe it’s one of those complicated terms traders throw around just to sound smart? 

Whatever you’re thinking, let’s just say rollover is the reason your Forex trades act a little different when the day ends. 

Curious now? Good. Because what you’re about to read is one of the most important things every beginner in Forex must understand

What Is Rollover in Forex?

In Forex trading, rollover is the process that happens when you keep a trade open overnight.

Let’s say you bought EUR/USD today but didn’t close the trade before the market day ended, your broker will “roll over” that trade into the next trading day. 

When this happens, you either earn a small amount of money or pay a small fee. This is called the rollover fee or swap.

So, it is not a bad word. It’s just a normal part of Forex trading when you hold a position overnight.

Why Does Rollover Happen?

Forex is not like buying clothes where you just pay and walk away. In Forex, you are trading currencies, and every currency comes with an interest rate from its country.

When you trade two currencies, you are dealing with two interest rates.

For example:

• If you buy a currency with a high interest rate and sell one with a low interest rate, you can earn money from the rollover.
• But if you buy a currency with a low interest rate and sell one with a high interest rate, you will pay the rollover fee.

This is like earning or paying “interest” for borrowing or lending the currency you’re trading.

What Time Does Rollover Happen?

It happens at 5:00 PM New York time (that’s when the Forex trading day officially ends and a new one begins). 

If your trade is still open at that time, it will be rolled over to the next day, and your account will be charged or credited the swap.

So yes, even if you’re sleeping, your trade is still working, and so is the rollover.

Can I Avoid Rollover?

Yes, you can, if you close all your trades before 5:00 PM New York time. But if you want to hold your trades longer and catch big moves, it is something you’ll deal with.

Just make sure to check your broker’s swap rates. They are not the same for every broker or currency pair.

Important Things to Know About Rollover

1. Triple Swap Wednesdays

On Wednesdays, rollover is charged three times to cover the weekend, since the market is closed on Saturday and Sunday. Don’t be shocked if you see a higher fee on Wednesday night.

2. Rollover is not always bad

Some traders actually plan to make money from rollover by trading currency pairs with large interest rate differences. This is called carry trading.

3. It’s automatic

You don’t have to press any button. If you leave your trade overnight, your broker handles the rollover automatically.

Conclusion

Now that you know what rollover means in Forex, you’ll start noticing it more in your trade history, in your account balance, and maybe even in your strategy. 

It’s one of those small but powerful parts of trading that many beginners ignore… until it surprises them.

So next time you hear that word, don’t panic. You’re no longer confused. You understand what it means, why it happens, and how it affects your Forex trades.