Per chance could someone elaborate on this? Rollover is a concept I'm really having trouble grasping. Could someone explain using a simple example, and expect me to ask dumb questions until I understand? Because that would be just fantastic
I'll get started by telling you guys what I do understand about rollover.
Say I go long on the USD/JPY pair. I'm buying the USD and selling the JPY, right? So which currency am I actually borrowing? Then, the interest rate of the currency I'm borrowing is put up against the interest rate of the currency I bought, and I pay the difference, right? So if I buy a micro lot (.10), I pay whatever % of 10,000?
Sorry, I realize my questions are hard to understand. I'm hoping someone out there will take pity on me and walk me through this so I can finally feel I grasp the concept.
-d