Rollover takes place at the end of the day when the trader doesn’t want to buy the traded currencies but to continue to trade until position is closed. If put simply, it is the interest paid or earned for holding a position overnight. The calculation method varies according to the type of FX/CFD to which it applies. Rollover amount will also vary because it is linked to current interest rates. The charge will be credited or debited to your account on the next trading day following the day to which it relates. If you close the position before the rollover time or open it after rollover time, you don’t have to pay and you won’t be paid any rollover.
It is important to note that the Wednesday rollover rate (swap rate) is 3 times more than the rollover rate on other days. Forex is a two-day deliverable market. So Wednesday’s rate is 3 days worth of interest – the positions are rolled through the weekend (when no fee is applied) to Monday.