Where are Forex trades transacted? There is no central location where trading takes place. The currency trading of Forex trading is among large international banks and institutions that process transactions for large currency trading and governments.
These institutions provide forex quotes on a continuous basis. Trading occurs via the internet, by telephone, and through computer terminals currency trading different locations worldwide.
However, the percentage of other direct and indirect market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, currency trading money brokers, futures and options traders, and private speculators. Each currency trading has an interest rate associated with it, and because forex is traded in pairs, every trade involves not currency trading two different currencies, but their two different interest rates.
If the interest rate on the currency you bought is higher currency trading currency trading interest rate of the currency you sold, then you will earn rollover positive roll. If the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay rollover negative roll.
Rollover can add a significant extra cost or profit to your trade. Any currency trading that are open at Midnight or sharp are considered to be held overnight, and are subject to rollover.
Most banks are closed on Saturdays and Sundays, but still count the currency trading for those two days. Thus, FX market books three days of rollover on Wednesdays.
The rollover rate is calculated for one day. So actually the position is held for 3 days, total rollover rate is calculated for 3 days.
However, Forex trading is not conducted on a regulated exchange Chi siamo.