What is forex rollover? Overnight swap fees explained

By SendPay Business · · 2 min read

What is forex rollover? Overnight swap fees explained

When a leveraged forex position is kept open past the daily cut-off, usually 5pm New York time, it's rolled over to the next day. The trader then pays or earns a small amount of interest, called the swap or rollover rate.

How rollover worksWhy it can be a cost or a creditTriple rollover

How rollover works

  1. A trader holds a position, such as buying GBP and selling USD.
  2. At the daily cut-off, the position is rolled over rather than settled.
  3. Interest is worked out from the gap between the two currencies' interest rates.
  4. The broker adds or takes that amount, usually after its own markup.

Why it can be a cost or a credit

If you buy the currency with the higher interest rate, you may earn a little each night. If you buy the lower-rate one, you usually pay. Broker markups often mean both sides pay in practice.

Triple rollover

Spot forex normally settles two business days after the trade. To cover the weekend, many brokers charge or pay three days of rollover on one weekday, often Wednesday.

Where SendPay fits

SendPay doesn't offer trading or leverage. SendPay platforms let your customers hold GBP, EUR and USD and exchange between them at a fee you set, alongside transfers and branded Visa cards, powered by licensed partners.

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Questions people ask

How much will rollover cost me?

Work out the overnight swap over several nights, including the triple-swap day.

Forex swap calculator →
How do I work out a trade's profit?

Work out profit or loss on any forex trade, in your account currency.

Forex profit calculator →
What is a carry trade?

Borrowing in a low-rate currency to hold a higher-rate one.

Carry trade →
What is leverage trading?

Trading with borrowed money to increase exposure.

Leverage trading →
What is a forex broker?

A firm that gives access to currency markets.

Forex brokers →

Read next

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.