Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


Triple Rollover on Wednesday

November 10, 2009 by

When the Forex brokers hold your position without making a physical delivery of currency (cash) to you, they should be paying an interest rate on your position. This interest rate is applied at the end of each day (17:00 EST) on all your open positions and is called rollover. This rollover interest rate is based on the difference between the central bank’s reference rate of the bought and sold currencies. For long AUD/JPY positions the rollover is mostly positive and is rather significant. The rollover rate for Saturday and Sunday is applied on Wednesday — so this weekday gets a triple rollover. The new Forex trading strategy that I’ve added to the site today is based on the triple rollovers, applied on Wednesday, and the reaction of AUD/JPY currency pairto this event. Contrary to the intuitive assumption, 1–2 hors before the triple rollover is applied on Wednesday, AUD/JPY goes down — as if traders were selling it, afraid to gain extra money for rollover. The strategy is statistically proven and I recommend you looking at it if you like trading based on the fundamental indicators.

If you have suggestion or questions regarding Wednesday AUD/JPY Forex strategy, please, feel free to write them using the form below.

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