An example of a Rollover

Imagine that you are trading the EUR/NZD.

The interest rate on the Euro is 0.05%; the interest rate on the New Zealand Dollar is 3.50%.

Note that the Euro is the main currency and that its interest rate is lower than that of the New Zealand Dollar.

So, if a Trader buys the Euro, he will be charged the rollover; and if he sells the Euro, he will receive the rollover fee.

Was this article helpful?
1 out of 1 found this helpful