Overnight interest rates forex
The net interest return on a currency position held by a trader. The rollover rate converts net currency interest rates, which are given as a percentage, into a cash return for the position.
What is an overnight position in the forex market?
Since a trader is long one currency and short another, the net effect of both interest rates has to be calculated. In forex, a rollover means that a position is extended at the end of the trading day without settling. Converting the EUR to USD, 5.
The net USD amount is 7. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.
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