Rollover In Forex Trading By Jason Uvios The rollover is the arrangement of artificially postponing the actual delivery settlement of a currency in position by normally a day. In actual practice, ideally all traders are required to take or give delivery of the currency they bought or sold (settlement) on the second business day after the deal was closed. But the actual practice differs by way of artificially extending the settlement day. But this rollover differs in the forex parlance fom that of stock trading.
It can be fairly well assumed that most of the forex accounts are leveraged with the broker having extended the trader a loan for the day which is the exposure limit. At the closing every day- theoretical closing; though- at 21:59 London time, traders need to close their position unless they actually want to take or give delivery of their positional currency. But due to the loan leverage the traders account will not be having that kind of capital that enables him to take delivery of the currency.
Brokers have a stated policy of closing all accounts at that precise time and almost instantaneously open a new account for the quantity of that currency pair at the corresponding rate. This means although the account has been closed theoretically, the positions are still open from the traders' perspective. This effectively means hat he traders do not have to take or give delivery nor do they have to payback the loan extended to them.
Broker, on the other hand charges an overnight interest for the amount rolled over. How is the differential interest calculated by the broker? Assume that you have a 1 lot position of euro/dollar with euro being your long position. If during the day the dollar appreciates by 25 pips and the broker rolled over your position
to the next day at the close with dollar having further appreciated by another pip overnight, this 1 pip is the difference in interest between the two currencies. So you pay this 1 pip premium to the broker.
On the other hand if you were short on euro and long on dollars you would gain that differential interest amount. To put things in perspective, if you bought a currency and it gained overnight you are to benefit by that incremental differential and if the reverse were to happen, you have to pay this to the broker.
In actual practice, all rollovers and overnight interests are automatically calculated and credited or debited to your account by the broker. For tax purposes, IRS treats the interest gained or paid separately.
Did you buy groceries this weekend? <!-- Begin check for Blog Icon -->
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/pricebooklogo.jpg" alt="" hspace="7" vspace="7" width="96" height="101" align="left" />Remember that the price book only works if people participate!</p><p>Please take some time to <a href="http://www.newsobserver.com/business/pricebook" target="_blank">enter your purchases</a> into the price book.</p><p>You will be helping others to save!</p></div>
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Stores and sustainable seafood... <!-- Begin check for Blog Icon -->
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<p>Greenpeace recently released a survey that ranked the country's largest grocery stores in terms of their seafood sustainability. Northeastern favorite Wegman's scored the highest. Others such as Whole Foods were not a surprise. North Carolina based Harris Teeter and Food Lion ranked No. 6 and 8, respectively.</p><p>But the shocker for me was Trader Joe's, which ranked toward the bottom of the list at No. 17.</p><p>Click Read More to see the top 20. </p> <div class="node-blog-teaser-footer">
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Today's coupons are up... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Today there was only a P&G Brandsaver insert.</p><p>We'll see the return of Red Plum and Smart Source inserts next week.</p><p>As always, the new version of the database is available for download below... </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/Find a Coupon 0705.xls'>Find a Coupon 0705.xls</a><br /></div>
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Win a $25 gas card at Galatea... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>The <a href="http://www.galateaboutique.com/" target="_blank">Galatea botique</a> in Raleigh's Seaboard Station has announced that it will be closed on Sundays during July and August.</p><p>However, a visit on a Monday this summer could turn into a particularly lucrative shopping trip. The store is running a promotion called Motoring Mondays during which it will give away a $25 gas card each week. The drawing will take place at 7 p.m. on each Monday until Labor Day.</p></div>
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Happy Fourth of July! <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Happy Fourth of July, everyone!</p><p>Like most of you, I am taking the day off to celebrate with some patriotic festivities.</p><p>If you're going shopping, it's a good weekend to snag some deals on furniture, appliances, apparel and just about anything else. (If you find a good one, feel free to share...)</p><p>And if you want to view the N&O's list of July 4 events, it's on our Mom2Mom blog, and you can find it by <a href="http://www.trianglemom2mom.com/events/search?op0=OR&filter0=356&op1=contains&filter1=&filter2=now" target="_blank">clicking here</a>.</p></div>
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Show your support for #14... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Office Depot is asking customers to submit their most unique photos showing support for the # 14 Office Depot/Old Spice Chevrolet Impala SS and driver Tony Stewart.</p><p>The grand prize pacakge comes from Hewlett-Packard, and includes an HP TouchSmart Desktop Computer, HP Mini Notebook computer, HP Photosmart Premium Fax All-in-One Printer, HP printer/photo ink packs and HP Premium Plus Photo Paper. Everyone who enters the "Show Us Your 14" online photo contest will receive an Office Depot coupon for 14 percent off their next qualifying purchase.</p><p>You can <a href="#/infield/showyour14/overview" target="_blank">find the contest here</a>... </p></div>
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Friday freebies... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>It's Friday, which means it's time for freebies!</p><p>*This is a great one... Tide is offering a $1.50 coupon on its new Tide Stain Release. Go to <a href="http://www.tide.com/en-US/tide-stain-release/index.jspx#/tide-stain-release/?utm_source=antares_standalone&utm_medium=tfcn&utm_campaign=antares" target="_blank">this Web site</a> and click the button to get the coupon. When you do, it will bring up a screen for P&G Everyday Solutions. Log in if you're registered, or register. And once you do, you get a new screen with a number of samples and coupons available, including Charmin wipes and Tampax. Be sure to answer all the questions in the drop down menus or the page won't take... </p><p>*I think I might have mentioned this one before, but there are Aveeno hair care samples <a href="http://www.aveeno.com/hair-care/free-samples" target="_blank">here</a>. </p><p>*And, not quite a freebie, but when you <a href="http://www.blizzardfanclub.com/join/" target="_blank">sign up</a> for the DQ Blizzard Fan Club, you get a coupon for a BOGO Blizzard deal...</p></div>
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Talk to your cashier... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Last weekend I was at home in the Philadelphia area visiting my family. I am trying to convince my non-couponing sister to start clipping, so I went to the store with her, binder in tow.</p><p>In all, we saved about $28, and she was very impressed. But the funniest part was when we got to the register...</p><p>The cashier scanned her store card and then my sister declared, "We have a TON of coupons!" The cashier just smiled and said, "OK." I laughed out loud because I thought it was so funny (we actually didn't have that many coupons, at least by my standards). But it is a good reminder that you should actually talk to your cashier. Especially if you have a rain check to redeem or some other coupon that may be out of the norm, they really appreciate the heads up. Plus, most of them are super nice folks...</p></div>
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Got too much toothpaste? <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>I've said it before and I'm saying it again: one of the greatest things about couponing is that you can then be generous to others. With things like toothpaste routinely FREE after coupon and/or rebate, there's really no reason to be stingy!</p><p>So if you have a glut of items clogging up your pantry or closet, here's a good opportunity to purge for a good cause. The BJ's clubs in Raleigh (6301 Plantation Drive) and Garner (255 Shenstone Blvd.) along with the USO of North Carolina are collecting items including toothpaste, toothbrushes, bar soap, protein snack bars, gum and lip balm through the end of July. Collection bins have been placed in both stores. After the drive, "welcome home" care packages will be assembled for troops. </p></div>
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Special hours this weekend... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Remember that many of the area's malls and stores will hold special hours this weekend because of the July 4 holiday. When in doubt, it is always best to call ahead to make sure the mall or store is open.</p><p>Saturday seems to be the day when there are the most changes to normal hours of operation. For your convenience, here are a few: </p><p><strong>Cary Towne Center:</strong> 10 a.m. to 8 p.m.</p><p><strong>Crabtree Valley Mall:</strong> 10 a.m. to 7 p.m.</p><p><strong>Northgate Mall: </strong>10 a.m. to 6 p.m. </p><p><strong>Streets at Southpoint:</strong> 10 a.m. to 7 p.m. </p><p><strong>Triangle Town Center: </strong>10 a.m. to 6 p.m. </p></div>
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Deals on photo prints... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Retailers continue to aggressively promote their one-hour photo services... I'd expect a few more deals in the sales fliers on Sunday with July 4 being such a big photo-taking holiday...</p><p>Through Saturday, July 11, Walgreens is <a href="http://email.walgreens.com/PS!eTDDWTodBpgFBgIAAAAGCgFICgg1MzM3OTg4NgoKMTQ4MzIyNDkxNQkAKhZJCgkzOTk0NTAyOTQF?" target="_blank">offering</a> 10-cent prints when you use the coupon code <strong>JULY4</strong>.</p></div>
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BOGO entrees at Rocky Top... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Rocky Top Hospitality is offering BOGO entrees this weekend at its restaurants, which include Michael Dean's, Bogarts, Hi5, Red Room and the Twisted Fork. As with most BOGOs, the cheaper of the two items will be free.</p><p>The promotion is good today through Sunday. You will need the coupon below. That's a good deal, but do be aware of the fine print: "18% gratuity added to pre-discount total." </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/RTH-July_Promo_Coupon.pdf'>RTH-July_Promo_Coupon.pdf</a><br /></div>
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Do you have a $25,000 recipe? <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>If you have a favorite family recipe and it's good enough, it could win you $25,000 from French's.</p><p>You can check out the contest and make your entry on the <a href="http://www.frenchs.com/Contest/index.php?" target="_blank">Web site here</a>. </p></div>
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Freebie alert: Long John Silvers <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Nation's Restaurant News is <a href="http://www.nrn.com/FoodWatch.aspx?id=369266&utm_source=MagnetMail&utm_medium=email&utm_term=sstock@newsobserver.com&utm_content=NRN-News-NRNam-7-1-09&utm_campaign=July%201,%202009%20-%20Studies%20show%20waning%20optimism%20among%20restaurateurs" target="_blank">reporting</a> that Long John Silver stores will be giving away free Baja Fish Tacos (new product) until 2:30 p.m. on July 14. According to the story, the taco "consists of Long John Silver?s classic batter-dipped fish layered inside a soft flour tortilla mixed with "crunchy crumbles," lettuce and a special Baja sauce." Normally it retails for 99 cents.</p></div>
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Food Lion recalls instant dry milk... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Food Lion has issued a recall due to possible salmonella contamination.</p><p>The affected product is Food Lion Instant Nonfat Dry Milk, SKU 35826-03577, 9.6 oz.</p><p>Consumers are being asked to return the product to the store for a full refund.</p><p>You can find information on Food Lion recalls <a href="http://www.foodlion.com/FoodSafety/recalls.asp " target="_blank">here</a>.</p></div>
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