Rollover refers to the procedure where the open trade’s settlement is carried forward
to another date. You may be aware that when it comes to the foreign exchange market,
trades have to be completed in the span of two business days. On the other hand,
it is possible for the open positions to be carried forward to the subsequent date
of settlement. Usually, the open positions will be rolled forward automatically
unless you have specified otherwise. This kind of swap has a rate of interest that
is normally preset.
It will be alright to define rollover as the sale of a particular value date and
at the same time it is also possible the buying of some other value date. The price
of the rollover signifies the differential interest rate of two currencies that
are involved in the foreign exchange trade. Rollover will not be carried out by
us if you inform us that you do not wish this to take place.
If you do not want us to rollover your position, then you have to get in touch with
us and let us know about this. Until and unless you instruct us against carrying
out rollover, we will rollover your currency pair. When you tell us not to do this,
then we will simply deliver you the currency.
To learn more about rollover or what kind of services we, at Aviva, can offer to
you; get in touch with us.