Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.
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.
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.
To find out more about the fees associated with rollovers, visit our charges section.
