Rollover definition
The settlement of a deal is rolled forward to another value date with the cost of this process based on the interest rate differential of the two currencies. An overnight swap, specifically the next business day against the following business day.
If you buy overnight a currency pair where the base currency has a higher interest rate than the terms currency, then you’ll receive interest and vice versa.
Related words
Revaluation ・ Revaluation ・ Rollover ・ Repatriation ・ Reserve Currency ・ Resistance・ Roll-Over・ Repo - Re-purchase・ Redemption・ Reinvested dividends
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