The overnight position in the foreign exchange market means you carry that day trade over until the next day without any settlement on the same day. It may sound cool when we say overnight position, but in short, it simply means, carrying over the position until the next day. Foreign exchange market is not something that starts in the morning and then ends at night. It operates 24 hours. Originally, the safest way to do this is to always stay on the chart for 24 hours. But we all know as humans, we need to take some sleep and eat. Naturally, we can’t keep looking at the chart for 24 hours. That is why, there are cases that you can deal with it by doing the overnight position.
If the order is carried over the date, subtraction / addition of swap / rollover is reflected in the profit and loss of the corresponding position. This is calculated by the interest rate differential between the two currencies of each currency pair when the position is held beyond the date. Whether the swap is subtracted or added to the position depends on the description and type of order. The swap is automatically converted into the currency displayed in the account, automatically charged to the client's account. It will be charged at 6:00 AM in Japan time and will be charged once from Friday to Monday. In addition, the swap interest rate at 24:00 Friday (0 o'clock Saturday) will be charged for 3 days including the weekend.
A swap point occurs when you move the position you created to the next day or later. This carryover is called rollover. Rollover takes place at the time of Closed New York market at 6:00 AM in Japan time. As a reason for rollover, it is the idea that FX should be done as a settlement date of currency in the principle of two business days later. If you have a long-term position (after 2 business days) you need to defer the settlement date. Normally, it will be deferred on the next business day, but for the currency you are buying at that time you will receive an interest rate for the deferred days, and for the currency you are selling you will get the payment interest for the deferred days. That difference is swap. Rollover will cover transactions through the interbank market and our company offers the highest level of rollover rate in the industry.