In forex, trading rollover is the course of action that moves the settlement date to the next day. It is relating to the interest that is paid or received (swap) in respect of holding an open position during the night or to the next date.
Settlement date is the payment date and the trading markets identify the time period between the transaction date and the settlement date. In forex trading, more often than not transactions are settled in two business days after the execution of a transaction. Rollover is a cutoff point of the day and necessary to determine the valuation for open orders with respect to the interest earned or lost (swap) and finance charges while using the margin account.
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