spot FOREX roll over.

High risk trading in the spot FOREX market but situation is changing from now on.
It may take time to 15 years after.  The regulation is lighter.  You dont know what
the company do business using your deposit account.  This is a bottom line doing business
in America.  You must deploy risk management to assess your investment.

To request, please send QQH.


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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.

Roll over involves exchanging the expiring position for a position expiring the following settlement date. The positions being exchanged are not valued at the same price. If a trader is long the currency bearing the higher interest rate, the position "being sold" is worth more than the position being acquired. The reverse is also true; if a trader is short the currency bearing the higher interest rate, then the trader is acquiring a position worth more than the one "being sold". The amount of the difference varies based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day. At 5:00 PM each day, funds are subtracted from or added to accounts with open positions because of this automatic roll over.

On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position is three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period. When there are bank holidays in either settlement country the normal roll schedule does not apply.

The roll over adjustment in the FOREX market is simply the accounting of the cost-of-carry on a day-to-day basis. In fact, in the demo account, you will see the roll charge or premium stated under a section called 'cost of carry'.

To avoid a roll over, the trader can close all positions by 5:00 PM New York time.