What is a rollover?
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 (or swap) adjustment is simply the accounting of the cost-of-carry on a day-to-day basis. Learn more about our rollover policy.^top
Where can I find Ally Invest Forex's rollover rates?
Rollover rates are accessible from the ForexTrader trading platform and in MyAccount. Today's rates are usually available by 12:00 pm ET and reflect the rates for the current trading day. The amount shown is denominated in the base currency of the account.^top
When is rollover applied?
Rollovers are processed at 5:00pm ET, so any open positions at that time will be automatically rolled and a debit or credit will be applied to your account.^top
How is the rollover rate determined?
Rollover rates are determined based on the interest rate differential of the two currencies based on the current spot price and the client service level. There is no commission or other fee for this service. You can view current rollover rates in My Account.
Positions that are held overnight on Wednesdays will earn or incur an extra two days of interest (due to the weekend). Additionally, positions with a value date that falls on a holiday also incur or earn additional interest.^top
How can I avoid paying rollover charges?
No interest is paid or received if you open and close a position in the same trading day.
Rollovers are only applied to positions held overnight, or at the close of the NY trading session at 5:00pm ET. Some brokers will apply rollovers on a second by second basis; however this policy can ultimately end up costing you more money in transaction costs in the form of rollover charges.^top