About Forex

Rollover

Radhai Investment does not charge its customers a Rolling Commission. What we do charge is a Rollover Fee (also known as an Overnight Swap). The Rollover Fee is calculated when a trader leaves a position open past 00:00 GMT. The term "Rollover" refers to the interest rate that Forex traders will pay or receive on the open positions that are rolled over from one day to the next. Every currency pair has its own interest rate.

How Does it Work?

In the Forex market, interest is calculated on a daily basis. At the end of each trading day at 00:00 GMT, traders can see from their account statement if they were charged or received the rollover fee. On regular week days the rollover rate is charged for the past trading day. As the trading week has five days, on Wednesdays, rollover interests for the next weekend are charged for three days.

The following is a brief example of rollover interest:

Case 1: The interest rate of the main currency is lower than that of the secondary currency.

For Example: EUR/AUD. EUR - Interest rate of 1.25%; AUD - interest rate of 4.50%

The Euro is the main currency of the pair and its interest rate is lower than that of the secondary currency, which is the Australian Dollar (AUD).

Buy - Long: When the customer buys the Euro, he will pay the Rollover Fee, which means the trader will be charged the Rollover Fee.

Sell - Short: When the trader sells the Euro, he earns the Rollover Fee, which means he will receive the Rollover Fee.

Case 2: The interest rate of the main currency is higher than that of the secondary currency.

For Example: AUD/CAD. AUD - Interest rate of 4.50%; CAD - Interest rate of 1%.

Australia is the main currency and its interest rate is higher than that of the Canadian Dollar (CAD).

Buy - Long: In this case, when the trader buys the AUD, he earns the Rollover Fee, which means that the trader will receive the Rollover Fee.

Sell - Short: In this case, when the customer sells the AUD, he pays the Rollover Fee, which means that the trader will be charged for the Rollover Fee.

It is important to note that the calculation of the volume of the trades affects the amount of the Rollover Fee. The larger the volume, the larger the Rollover Fee becomes. Take into consideration that on Wednesdays, Rollover interests for the next weekend are charged for three days.