Tuesday, October 13, 2009

Rolling over

In the interbank market, the spot forex makes it a rule to make a process to settle two business days after the trade date, but the forex margin trading has no need to pay or receive the full amount of the contract values. The forex margin trading system allows to set off the profit or loss within the margin account. If the position is closed clearly in a day, the relevant profit or loss is forced to net to the account balance. Needless to say, you can carry your position to the following day. This is called as "rolling over". This process of rolling over is left continued automatically every day until the position is liquidated. There is no time limit for carrying position in the forex margin trading.

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