Rollover time
Family VII · Market & styles
Not to be confused with rollover.
Rollover time is the point in the trading day when a broker closes and reopens open positions for the next value date, applying overnight financing charges or credits. It usually coincides with the daily close of the underlying market, but the exact hour varies by broker, instrument and venue. Trades held through this moment are subject to a swap or rollover adjustment.[1]
When it occurs
Rollover time is not a single universal clock time. It is set by the broker or liquidity provider and commonly aligns with the daily close of the relevant market, such as the 5 p.m. New York close for many foreign exchange pairs. Because the exact time varies by broker, instrument and venue, traders should check the contract specifications for each product.
Positions held through rollover time are rolled to the next settlement date. The adjustment appears as a debit or credit on the account, separate from the position's profit or loss.
Worked example
Triple swap days
When rollover time falls on a day that precedes a market holiday, the swap may be applied for multiple days at once. This is often called a triple swap or triple rollover. The number of days and the exact schedule vary by broker and instrument.
Often confused with
- rollover
- Rollover is the act or adjustment of extending a position to the next settlement date, while rollover time is the specific moment when that adjustment is applied; the visible sign is that rollover time is a clock time or session boundary, whereas rollover is the resulting charge or credit.
See also
References
- ↑ Trading hours published by the exchanges and venues concerned. Session boundaries shift with daylight saving in each region and are not the same all year.