Dear all,
I read about Roll Over effect that if a position is held longer than two business days on spot market but I'm still not clear about it. May I clarify the following :
If the base currency that I bought has a higher interest rate than the quoted currency, I'll receive the interest; while if the quoted currency has a higher interest, I'll need to pay the interest ?
Or it is a kind of cost in additional to the spread payable to the broker ?
Thanks for your time ....
.
I read about Roll Over effect that if a position is held longer than two business days on spot market but I'm still not clear about it. May I clarify the following :
If the base currency that I bought has a higher interest rate than the quoted currency, I'll receive the interest; while if the quoted currency has a higher interest, I'll need to pay the interest ?
Or it is a kind of cost in additional to the spread payable to the broker ?
Thanks for your time ....
.