I have a few questions about rollover. I understand that if i long a trade between 2 currencies past 5pm new york time, i would earn or lose interest monies based upon the trade. but what happens if i buy at 4:59pm and decide to sell at 5:01pm? do i earn or lose interest then?......or what if i buy at 5:05pm? do i have to keep the trade until 5:01pm the following day to earn or lose interest?

herronryan,

You would earn the full day's interest in the example you cited.

I see your line of thinking here - this is not free money waiting for the taking. The banks are well aware of the potential here. They widen the spreads to make this idea generally unprofitable.

The only way I know of to take advantage of the rollover involves arbirtrage between Oanda and another FX broker paying high rollover.

Oanda does not pay rollover like other brokers. Instead, they use continuously charged interest.

On triple Wednesdays and a few occasional long holidays, it is possible to buy a high rollover pair like GBP/JPY to earn the interest and simulataneously sell GBP/JPY at Oanda, where the interest charges on a two minute trade are negligible. Even after the spread, the transactions generally work in the trader's favor.

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Shaun Overton
OneStepRemoved.com
Strategy and Automated Trading Development