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| FOREX BASICS |
| ✓ FOREX HISTORY |
✓ FOREX TRADING CONCEPT |
✓ TYPE OF ORDERS |
| ✓ CONTRACT SIZE |
✓ MARGIN AND LEVERAGE |
✓ ROLLOVER |
| ✓ FOREX GLOSSARY |
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ROLLOVER
In the spot Forex market, trades settle in two business days. If a trader sells 10,000 euros on Tuesday, the seller must deliver 10,000 euros on Thursday unless the position is held open and rolled over to the next value date.
Roll over involves exchanging the expiring position for a position expiring the following settlement date. The positions being exchanged are not valued at the same price. If a trader is long the currency bearing the higher interest rate, the position "being sold" is worth more than the position being acquired.
The reverse is also true; if a trader is short the currency bearing the higher interest rate, the trader is acquiring a position worth more than the one "being sold". The amount of the difference varies based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day. Rollover is also referred to as "premium".
On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position is three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period. When there are bank holidays in either settlement country the normal roll schedule does not apply.
Rollover Table
| Position Rolls |
Delivery Date Changes |
| Monday -> Tuesday |
Wednesday -> Thursday |
| Tuesday -> Wednesday |
Thursday -> Friday |
| Wednesday -> Thursday |
Friday -> Saturday -> Sunday |
| Thursday -> Friday |
Monday -> Tuesday |
| Friday -> Monday |
Tuesday -> Wednesday |
The total interest for the week can only be a maximum of 7 days.
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| ECONOMIC CALENDARS |
| DATE |
TIME |
COUNTRY |
EVENT |
FORECAST |
PREVIOUS |
| 07/21/08 |
3:15am |
Switzerland |
PPI m/m |
0.4% |
1.2% |
| 07/21/08 |
4:45am |
United Kingdom |
BOE Governor King Speaks |
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|
|
8:30am |
Canada |
Core Retail Sales m/m |
0.8% |
1.1% |
|
9:30pm |
Australia |
CPI q/q |
1.2 |
1.3% |
| 07/23/08 |
4:30am |
United Kingdom |
MPC Meeting Minutes |
8-1 hld |
8-1 hld |
|
7:00am |
Canada |
Core CPI m/m |
0.2% |
0.3% |
|
5:00pm |
New Zealand |
Monetary Policy Statement |
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|
|
5:00pm |
New Zealand |
Official Cash Rate |
8.25% |
8.25% |
| 07/24/08 |
4:00am |
Eurozone |
German Ifo Business Climate Index |
100.2 |
101.3 |
|
4:30am |
United Kingdom |
Retail Sales m/m |
-2.5% |
3.5% |
|
10:00am |
United States |
Existing Home Sales |
4.93M |
4.99M |
| 07/25/08 |
4:30am |
United Kingdom |
Prelim GDP q/q |
0.2% |
0.3% |
|
8:30am |
United States |
Core Durable Goods Orders m/m |
-0.2% |
-0.9% |
|
10:00am |
United States |
New Home Sales |
508K |
512K |
| LATEST MARKET UPDATES |
CURRENCY OUTLOOK |
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