At the end of each business day at 5PM (EST), NatureForex will automatically rollover or swap, all existing open positions into the next spot settlement date. NatureForex will debit or credit a client's account, depending on the interest rate differential between the base currency and the counter currency; and the direction of a client's position. If the client, for example, is long a currency pair—where the overnight rate for the base currency is higher than the rate for the counter currency—a client will earn a small credit for positions held overnight. If the opposite is true, a client account will be debited for the difference in the interest rate differential. The fundamental reason for this is: should a client be long on a higher yielding currency, the client should benefit from being able to invest and earn a higher return overnight than what the client has to pay for being short the lower yielding currency.
What is rollover?