What is the Roll?

Discussion in 'Forex' started by oldtime, Nov 11, 2011.

  1. What is the roll and how does it work? What does it mean if I am flat but have a negative balance or a positive balance in different currencies? How often should I close them out?
  2. Trades made with dealers in the spot foreign exchange market, are subject to receiving interest or being debited interest (calculated on your leveraged paper balance), if positions are held overnight. These calculations are seamless and you do not need to do anything.

    This usually happens at 17:00 (est)..except at Oanda.


    P.S. Futures are a completely different story than the Cash Forex Market (spot foreign exchange market).

    P.P.S. If you are flat you do not get this interest calculation, but some dealers pay you interest on your cash balance.

    P.P.P.S. Wednesday's are days where this calculation is tripled (the settlements take place two days after), because of the weekend.
  3. also...the Roll is what follows the Rock....

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  4. so if it's a positive balance I pay no interest, right?
  5. Any more questions require that you first listen to that awesome video above.

    Pardon this, but I was getting a roll when you posted.

  6. You will be paid interest each day that you hold the higher interest-bearing currency, or will be debited each day that you hold the lower interest-bearing currency. Remember this is the leveraged amount....eventhough its paper.

    The construction of a pair you are long in as you know is Long/Short...EUR/USD=EUR long and USD short. Vice versa if you are short that pair.

  7. I have an excel sheet that I have not updated in years. It is called "Interest Cow".

    See below