Rollover has a particular significance in relation to IG's platform. Here, we define rollover in general investing and explain what it means to you when trading with IG.
In trading, a rollover is the process of keeping a position open beyond its expiry.
Many trades have an expiry date attached to them, at which point the position will automatically close and any profits or losses will be realised. In some circumstances, however, the trade can be rolled over. This means that profits or losses will be realised and the trade gets a new expiry. Often, a rollover will come with an associated charge.
On your IG account, you may receive a discount in the closing or opening spread when rolling your exposure onto a later dated contract.
Futures and forward contracts, for example, can sometimes be rolled over instead of expiring. In this instance, the price of opening a new position will be factored into the cost. In options, rolling over an option means buying a similar option with a later expiry date.
On shorter-term trades like Spot FX, there is a cost associated with keeping the position open overnight. This can also be known as the cost of carry.
We offer forward contracts on CFDs, with rollovers available up until 15 minutes before the position is due to expire. On daily CFDs, a rollover for keeping a position overnight will be calculated differently for forex positions and other markets.