Rollover is interest earned or paid on Forex trading positions held overnight. It varies depending on the difference
in interest rates between a currency pair and fluctuates day to day with the movement of prices. A Negative Roll is when
you sell a currency that pays higher interest rate, so you pay interest. A Positive Roll is when you buy a currency that
pays higher interest rate, so you can earn interest. Negative Rolls are routine, but not all Forex Brokers offer positive
rolls.
The "Carry Trade" is a popular Forex Trading strategy which benefits from Positive Rolls and the high leverage
available in the Forex market. For example, if you buy the USD/JPY, you can earn a positive roll. You are essentially
borrowing the Japanese yen at a low interest rate cost to buy the US dollar with a high interest rate earning. Remember
that leverage can dramatically amplify your losses, so beware of this technique, as it carries a high level of risk.