Rollover debit

A rollover debit is a scenario where a trader incurs a loss because of varying differences between the interest rates of currencies involved. A rollover debit happens if the borrowed currency has a higher interest rate than the currency the trader used to loan in out. If the trader borrows 1 million Pounds at 2% interest rate and loans it out in the form of the Us dollar which has an interest rate of 1%, the trader might take a loss.