Rollover

You need to understand the implications of swaps and rollover when trading in the Forex market. These terms refer to the interest you either earn or pay on your positions overnight, based on the interest rate differentials of the currencies involved. While positive swaps can enhance your profitability, negative swaps may reduce your returns or even lead to unexpected losses. By grasping how these mechanisms operate, you can make more informed decisions that directly affect your trading outcomes.Understanding Forex Swaps Definition of Forex Swaps A Forex swap is a type of financing transaction that involves the simultaneous exchange of two…