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Forex Rollover?
Can anyone explain what "rollover" on FX? I know it is the differences in interbank rates, but still do not understand. I saw a table that had different values for each currency pair, why do some positive and some negative? If this map is accurate, I trade just currency pairs with a positive turn rate?
If you have a Forex position overnight, you pay or receive what is called refinancing rate currency. The conversion rate is calculated by the difference in the interest rate that applies to the two currencies in the currency pairs that are being negotiated. If you buy a currency pair in the base currency has a higher interest rate than currency terms, and then receive refinancing, and vice versa!
Currency: EUR / AUD and trade is growing at FXstreet.com 1.5023 (Sydney) - The AUD has reversed recent gains against the euro and was trading at 1.5023. The couple also shows upward trends in graphics per hour. The EUR / AUD opened at 1.4998 and has been as high as 1.5045. The couple has the support at 1.4882 and 1.5114 resistance.
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Kevin Kerr's unparallleled expertise in futures and commodities has made him a regular contributor to news outlets like CNN FM, CNBC and CBS Marketwatch, where he has been quoted in over 500 articles. |
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