In the forex market, a Rollover refers to the process of rolling over the settlement of an open position to the next value date. This is done to extend the length of time that the position is held and can be used by traders to hold a position for a longer period of time or to adjust the terms of the trade in some other way.When a rollover is done, the trader is essentially closing the existing position and opening a new one with the same terms, but with a later value date. The trader will typically be required to pay or receive the difference in interest rates between the two currencies being traded. This is known as the rollover or financing charge, and it can either be a positive or negative amount depending on the direction of the trade and the relative interest rates of the two currencies.Rollovers are a common practice in the forex market and can be an important part of a trader's strategy. They can be used to hold a position for a longer period of time in order to profit from longer-term market trends, or to adjust the terms of a trade in order to better manage risk or take advantage of market conditions.
