FX Trading Advantage - 4
Spot Market
Market for buying and selling currencies usually for settlement within two business days (the value date). USD/CAD = 1 day
Rollover
The Process whereby the settlement of a transaction is rolled forward to the next value date, typically at 5PM EST/10PM GMT. If you open a position on Monday, the settlement date is Wednesday, however if you hold this position past rollover on Monday, the new value date is Thursday. Most brokers will automatically roll over your open positions, allowing you to hold a position for an indefinite period of time. Cost of this process is based on the interest rate differential between two currencies. Depending on your broker’s roll over policy, if you are holding a currency with a higher rate of interest in the pair, you will earn interest, however if you are holding a currency with a lower rate of interest in the pair, you will pay it.
Market for buying and selling currencies usually for settlement within two business days (the value date). USD/CAD = 1 day
Rollover
The Process whereby the settlement of a transaction is rolled forward to the next value date, typically at 5PM EST/10PM GMT. If you open a position on Monday, the settlement date is Wednesday, however if you hold this position past rollover on Monday, the new value date is Thursday. Most brokers will automatically roll over your open positions, allowing you to hold a position for an indefinite period of time. Cost of this process is based on the interest rate differential between two currencies. Depending on your broker’s roll over policy, if you are holding a currency with a higher rate of interest in the pair, you will earn interest, however if you are holding a currency with a lower rate of interest in the pair, you will pay it.
AUDNZD Technical Fundamental
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