Rollover in Foreign Exchange Forex Trade
A spot transaction is generally due for settlement within two business day (value date). The cost of rolling over a transaction based on the interest rate difference between the two funds in a transaction. If you are long (bought) the money with a higher rate of interest you will earn interest. If you are short (sell) the money with a higher rate of interest you will pay interest. Most brokers will automatically roll over your positions open that allows you to maintain your position indefinitely.