Forex Overnight Rates. Rates are displayed for federal business days only.) The first thing to understand a forex rollover is the interest rates that are at play. Interest rates also play an important role in Forex market.
S. and around the globe to ensure your package arrives the next day.. To put it simply, as long as an investor holds/buys/longs a currency with a higher interest rate against another currency with a lower interest rate, he/she may receive swap when holding a. The difference between those two rates is the final overnight interest or swap rate.
The difference between the interest rates of two country's currencies is called the interest-rate differential.
Each transaction will have a delivery date, and the generation of overnight interest rates is also related to the delivery date.
Overnight Rate: The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds with another depository institution in the overnight market. It's the interest fee, which is charged or earned, for keeping positions open overnight. Rollovers are typically the interest charged or earned for holding positions overnight.