Rollover
Rollover
A rollover is the simultaneous closing of an open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies.
In the spot forex market, trades must be settled in two business days. For example, if a trader sells 100,000 Euros on Tuesday, then the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to customers, all open forex positions at the end of the day (5:00 PM New York time) are automatically rolled over to the next settlement date. The rollover adjustment is simply the accounting of the cost-of-carry on a day-to-day basis.
TRY Financing
It's important for traders to be aware of the unique characteristics and risks associated with trading Turkish Lira (TRY) pairs such as EURTRY, USDTRY, and TRYJPY due to the high volatility of the currency.
One crucial aspect traders should consider is the swap rates. A swap rate is the interest rate differential between the two currencies in a currency pair and is applied when holding positions overnight. Depending on the prevailing interest rates in Turkey and the other currency's country, traders may either receive or pay swap fees* when holding LONG or SHORT positions in TRY pairs overnight.
However, the high volatility in TRY pairs can result in larger and more frequent swings in the interest rate differential, leading to situations where traders may need to pay swap fees instead of receiving them.
Please note that market conditions, economic factors, and geopolitical events can impact all currency pairs to varying degrees, and each pair comes with its unique set of risks.
*The swap fee is called Financing (Forex.com Platforms), and Swaps (MetaTrader Platforms) on the customer statements.