How rollover is calculated for CAD crosses

Direct answer

Rollover for CAD crosses is the daily swap (often called “interest”) applied when a trade is held from one value date to the next. Conceptually, it comes from the interest-rate differential between the two currencies in the pair, then gets translated into the trade’s size, direction (buy vs sell), and account rules. In many setups, CAD crosses may also involve a “triple-swap” convention on specific roll days, so the charge or credit can be multiplied to cover an extra day.

Mechanism or definition

A forex position is typically settled by exchanging currencies on value dates. If you keep the position open, you are not actually exchanging cash every day; instead, platforms approximate the cost/benefit of holding that interest exposure by applying rollover.

Interest-rate inputs (the stable part)

At a high level, the swap amount is driven by a differential between the two currencies’ interest rates (or a proxy for those rates). For a given currency pair, the currency you are long effectively “earns” implied interest, while the currency you are short effectively “pays” implied interest. The sign depends on whether the position is long or short relative to the interest differential.

For CAD crosses, the same principle applies: you still compare the implied interest of CAD against the other currency in the cross. The cross itself is built from two legs (for example, “CAD vs X” where X is the other currency), but the rollover you see is usually produced as a single net swap figure for the cross pair.

Conversion to a daily money amount

To turn the interest differential into the swap you pay or receive, a provider typically applies:

• the trade notional (position size)
• the contract’s quote and base currency (how P/L and fees are denominated)
• a scaling factor that converts annualized rate ideas into a daily amount
• rounding and platform-specific conventions

The exact formula varies across providers, so the dependable way to understand “your” calculation is to use the swap rates and calculation settings your platform displays.

Triple-swap convention (extra-day coverage)

Many forex rollover systems include an exception for roll timing around weekends or broker roll days. Instead of one day’s swap being applied, an extra factor may be applied so that positions that would otherwise span multiple non-business days reflect the additional holding time. This is commonly referred to as “triple-swap,” meaning the daily swap can be multiplied (often by three) on the roll day.

For CAD crosses, whether and how triple-swap appears depends on the provider’s rollover schedule for that specific instrument and account type. The concept is the same: multiply the daily swap component to account for an extra value-date gap.

Evidence or example (with explicit assumptions)

Because no live provider data is assumed here, treat the following as an illustrative model.

Assume:

1. A provider publishes a swap rate for a CAD cross as “points per day” for each direction (buy and sell).
2. Your platform converts those points into account currency using its standard contract math.
3. On a triple-swap roll day, the provider multiplies the daily swap by 3.

Example model:

• You hold a long position in a CAD cross.
• The provider’s published swap rate for “long” is S (per day).
• On a normal day, rollover adds approximately S to your account (after conversion/scaling).
• On a triple-swap day, the provider charges/credits approximately 3·S instead.

If you observe that Friday rollover is larger than other days, it often aligns with a triple-swap-style convention. If it does not, the provider may use a different schedule (for example, a different multiplication factor, different roll timing, or instrument-specific rules).

Limitations and risks (what can go wrong)

1. Broker/platform adjustments can differ from the simplified interest differential. Even if the underlying drivers are interest-rate related, providers may incorporate operational costs, liquidity considerations, or internal calculation conventions.

2. Instrument-specific rollover rules. Triple-swap schedules may vary by instrument, account type, or trading conditions. Two CAD crosses can behave differently on the same calendar day.

3. **Execution timing and cut-offs. ** Rollover typically depends on the trade’s effective holding period and the platform’s server time cut-off.