What is a Forex rollover?

What is a Forex rollover?

What is a Forex rollover?

The term "rollover" refers to the Forex market. In this article, we will tell you what it is and why it is needed. Let's also look at the difference between rollovers for different Forex brokers.

From English rollover is translated as-renewal or, to make it clearer update. In other words, this is an update of operations. And if we talk about the Forex market, this is the redistribution of finances between the accounts of its participants in PAMM accounts. For most Forex brokers, this is the withdrawal of interest for an open order that goes to the next trading day.

The concept of “rollover” should be known, first of all, to investors who invest their funds in PAMM accounts. In other words, without knowing what a Forex rollover is, an investor is not considered a professional, since it is he who summarizes the results of trading in the financial market,in particular Forex.

Rollover can be called special technical events that are performed after a certain time interval, which is set by the broker individually.

The following operations can occur within a rollover:

the results of trades that have already passed are recorded;
losses and profits are distributed between managers and investors of PAMM accounts;
requests for withdrawal and Deposit of funds are processed;
the latest information appears on the official websites of brokers.

About the features of rollover

In order to better understand what a rollover is on Forex, we note that they are of 2 types:

Open. When they are involved, requests for distribution of the received profit are executed, without deviating from the offer agreement.
Private. Requests for profit distribution do not occur during its validity. Only operations are performed to collect statistics and update data for all PAMM accounts within a specific broker.

Note that each Forex broker has its own concept of rollover. In other words, it is conducted according to the rules set by the broker. For example, most trading platforms have an open rollover that has a specific trigger time. But this value can't be less than once every 24 hours. This is done in order to get a certain percentage of money for investors, and managing traders-a Commission for profitable trading on investors ' funds.
What are rollovers for Forex brokers?

rollover example

Examples of rollover values.

We will not go far and consider the action of the roller on the example of the company Alpari. The rollover is performed at the end of each trading hour. The Manager independently sets the frequency and type of rollovers in the task scheduler, which are naturally open.

So, if rollovers are executed every hour on the broker's site by default, then the Manager will not be able to set rollovers with execution once every 90 minutes or 120 minutes. But 30 minutes is enough.

If the rollover still fails, for example, due to some technical problems, then it will be executed as part of the first rollover, as soon as the problems that prevent its execution are fixed.

As for the Amarkets broker,rollover transfers open positions to the next price delivery date on Its platform. During the next open rollover, withdrawal requests are executed. To create a request, you need to set the exact time of this operation. After all, every trader who trades investors ' money has their own time set when they connect. At 20:00 Moscow time, a technical open rollover is performed. It is necessary to have a connection with the trading strategies of managers.

On the 1st of each month, funds are automatically redistributed between investors and PAMM account managers. In other words, remuneration is paid to partners, as well as reinvestment.

Now you understand how important it is to understand what a rollover is. After all, this will allow you to submit an order to withdraw the received profit in time. And those who did not have time to perform this operation will be able to withdraw profit only after the next rollover.

That is why it is important to ask the support service of the broker in question, which provides trading with PAMM accounts, about the frequency of rollovers, as well as what exactly is allowed to be carried out in this time period.

In other words, within the PAMM account, the investor, knowing the time of closed rollovers, can withdraw funds as follows:

output only profit for the current trading period;
the amount of profit in excess of the minimum Deposit;
withdraw all funds.

Investors should know that most PAMM accounts have open rollovers that are triggered every hour and have a threshold of 10 minutes. The minimum number of rollovers allowed per day is one.

Comments (0)