Rollover / Daily Close

### What actually happens at 17:00 New York Rollover is not a chart event. It is a bookkeeping event that leaks onto your chart. Spot FX settles two business days after the trade (T+2), with narrow exceptions such as USD/CAD, which Pepperstone's swap guide notes settles the day after the trade (T+1). If you are still holding when the value date rolls forward, your broker has to roll the settlement out another day, and the price of doing that is the swap. Convention puts that roll at 5pm New York time, which is why brokers book swap at that moment. Pepperstone gives the rollover time as 5pm New York (00:00 server time), and FOREX.com says all open positions at the end of the day, 5pm New York, are automatically rolled to the next settlement date. Three things land in the same few minutes. Swap is debited or credited. The broker's trading day ticks over, which is why on a typical broker feed the daily candle closes at 17:00 New York rather than at midnight (it follows the broker's server day, so confirm it on your own platform). And liquidity thins, because the desks that price your spread are squaring their own books: London is long gone, New York is closing, Asia has not properly opened. Fewer quotes means a wider spread, and a wider spread means the number on your screen briefly stops being a number you can actually trade at. ### Why Wednesday is a triple charge Hold past 5pm New York on a Wednesday and the new value date lands on Monday, because Saturday and Sunday are not settlement days. You are financing the position across the weekend too, so three days of swap get booked in one hit. Pepperstone and FOREX.com describe it the same way, and it is calendar arithmetic, not a broker penalty. The practical bite: a swing position whose nightly cost looks trivial gets charged three times that on one specific night. If a trade will be live through Wednesday's rollover, the plan has to accept that cost before you click, not discover it afterwards. ### How the swap is actually priced Swap comes from the interest rate differential between the two currencies, expressed as a tom-next rate. Pepperstone states it sources its tom-next rates from a tier-one global investment bank and updates them regularly. Two things follow. It is a per-lot funding cost, so it scales with position size and holding time, not with your profit or loss. And the long and short figures on the same pair are usually not mirror images of each other, so read both in your platform's contract specification rather than assuming one is the negative of the other. ### Where traders get caught - **Stopped out by a spread, not a move.** A stop sitting close to price can be taken out by the widening alone, on a quote that barely existed. Cost with nothing to show for it. - **Reading the rollover candle as information.** That spike is a liquidity artefact. It is not order flow, it is not a sweep, and it is not a rejection candle. - **Assuming swap is noise because one night was small.** Over weeks, and especially over Wednesdays, it is a real line in the P&L. Our rule is session hygiene, not strategy: never enter a new trade at rollover, and never hold through it unless the plan explicitly accepts the swap cost. The pricing side sits in Swap / Rollover.