What is a Swap (Rollover) ?
Swap or Rollover refers to the interest traders may earn or be charged daily, for positions in the spot Forex market. The Spot Forex market accounts for interest on a daily basis. At the end of each trading day at 5:00pm EST, traders will see the rollover charge or income posted (credited). Take USD/JPY in May 2007 for example. At the time the US Dollar earned 5.25% and the Japanese Yen 0.25% interest. A trader that buys this pair would make the differential of 5% on the year by simply holding the position