In the spot fx market, trades settle in two business days and open trading positions held at time of rollover are automatically rolled over by the forex broker to the next settlement date, the open trade position is swapped for a new position expiring the following settlement date at 5pm EST rollover. This is also known as "tomorrow, next day" or simply "tom next."
For example, if you buy 200,000 Euros on Monday, you must deliver 200,000 Euros on Wednesday. On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period.
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