A rollover (or swap) is the interest charge or credit applied to a leveraged position held through a daily cutoff. It reflects the cost of financing the part of the position you did not pay for in cash, and it recurs every night the position stays open.
How it works
The charge scales with notional value, not with the margin you posted: notional × daily rate × nights held. Rates typically track a reference rate plus the provider’s markup, so they move as interest-rate environments change.
In some products and directions the rate can be positive — the holder receives a credit, commonly when interest-rate differentials favor the position held. Direction decides which side of the rate you are on.
Why it matters
Rollover turns holding time into a cost. A position that is flat on day one drifts underwater as nights accumulate, so the expected move must cover rent as well as direction.
Because the charge is invisible on trade confirmations, it is routinely underestimated. It shows up in the account balance, a little at a time — which is exactly how it ends up larger than expected.
A simple market example
A $20,000 leveraged position at an assumed 6% annual rate pays roughly $3.30 per night. Held for 30 nights, that is about $99 — a fixed drag of nearly 0.5% on the notional before any market movement.
Common mistakes
Assuming only long positions pay. Short positions borrow the asset to sell it, and borrowing has its own cost — sometimes higher for hard-to-borrow instruments.
Multiplying the daily rate by calendar days without checking the broker’s counting method — some products charge weekends separately or in bundles.
Frequently asked questions
Is rollover the same as commission?
No. Commission is a one-time explicit fee per trade; rollover recurs nightly while a leveraged position stays open. One scales with trade count, the other with holding time.
Why do rates differ between products and directions?
They reflect what is being financed or borrowed: currency interest differentials, stock borrow demand, and the provider’s markup. Two directions of the same product can have opposite signs.
How do I find my rollover rate?
It is in your broker’s product specifications or contract details — usually listed per instrument and per direction. Check the reference rate it tracks and whether weekends are charged.
Educational content only. Definitions describe common market usage and may vary by jurisdiction, instrument, or institution.