Rollover:

Rollover:

In the spot forex market, transactions must be settled in two business days from the trade date. This means that if you sell 100,000 US dollars on Monday, you must deliver 100,000 US dollars on Wednesday, unless the position is rolled over. If you hold a spot forex position overnight, your position will be rolled over at 5 p.m. New York time to the next settlement date two business days in the future.
When you hold your positions overnight, you can earn or be charged an extra amount of money, as is true with futures. Depending on the interest rate differential, you may pay or receive interest fees, also known as rollover fees. If you long a currency pair where the base currency has a higher interest rate than the counter currency, then you will receive interest, and vice versa.
Let’s say you buy USD/CHF, and since the interbank interest rates are higher in the US than in Switzerland, you will gain a rollover fee. The amount you receive is determined by the interest rate differential between the two currencies, and fluctuates daily with the movement of prices. On the other hand, if the interest rates are higher in Switzerland, then you may have to pay a rollover fee.
Rollover transactions will be recorded in your account statement, and may be presented in various ways according to different brokers. For example, you may see it in the following simplified format:

30/6/06	LMT	S	1.2389
30/6/06	RCL	S	1.2378
30/6/06	ROP	S	1.23762

In this example, the USD/CHF short position was opened at 1.2389, and during rollover, it was roll-closed (RCL) at 1.2378, and roll-opened (ROP) at 1.23762. Since the US dollar has a higher interest rate than the Franc, going short on USD means you have to pay the difference between the RCL and ROP prices as interest fees. 3-Day Rollover
For positions that are open on Wednesday, and held through 5 p.m. New York time, your rollover fees, whether added or subtracted, tends to be around three times the usual amount. The reason for this is that a 3-day rollover accounts for settlement of trades through the weekend period. The total interest you can pay or receive for the week can only be a maximum of seven days.