Rollover is the process of extending the lifetime of a currency position beyond its daily settlement period in the spot forex market, where retail traders and forex brokers are active. Under usual circumstances, contracts between two parties in the spot forex market are settled at the end of the day, with physical delivery taking place a short while later. But since many traders are not satisfied with automatically closing their positions at the end of the day, brokers allow the maintenance of positions through a process called rollover.
Rollover time is usually the close of the New York market. At this time, any extended positions receive the carry of the currency pair, whether negative or positive, which is credited to the account at the same time.
Rollover is important for carry traders, and long term traders, but if your trade positions never outlast the trading day, you will not have much to worry about this aspect of the currency market. For example, day traders, and scalpers do not deal with any benefit or loss that results from rollovers.
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