What is Rollover?

The process of extending the settlement date of an open position to the next business day.

In-Depth Explanation

In Forex, rollover occurs at the end of the New York session (5:00 PM EST). This is when swap rates are calculated and applied to the account.

"The trader closed their position before 5:00 PM to avoid the high rollover costs over the weekend."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.