In the forex and CFD markets, rollovers (or swaps) are routine processes that occur when a position is held overnight. They involve carrying the contract forward to the next trading day, often with a small fee or credit depending on interest rate differentials. But in the Auto-Close on Rollovers scam, fraudulent brokers exploit this process by automatically closing positions without trader consent, blaming the rollover as a technical or contractual justification.

This article exposes how this tactic is used to eliminate profitable trades, trigger margin losses, or block withdrawals—all under the guise of rollover mechanics.

What Is the Auto-Close on Rollovers Scam?

This scam involves a broker automatically closing open trades during or just before the daily rollover window—typically at 5pm EST (market close). The broker claims:

• The trade was closed “due to rollover policy”
• Platform rules require auto-close of certain positions
• There were liquidity or pricing issues related to swap calculations

The real motive, however, is often to:

• Wipe out profitable trades
• Lock in losses for the broker’s benefit
• Reset bonus terms or trading volume conditions
• Prevent the trader from reaching a withdrawal threshold

How the Scam Works

Step 1: Trader Holds Positions Through Rollover

The trader holds overnight positions—sometimes in profit, sometimes as part of a longer-term strategy.

Step 2: Broker Applies an Auto-Close Rule Without Consent

At or near the rollover time, trades are suddenly:

• Closed at market
• Closed at unfavourable prices (e.g. worst tick in a spread)
• Logged as “closed due to rollover policy” in the trade history

The broker provides no advance warning, and this action often results in a loss or the erasure of accrued profit.

Step 3: Trader Asks for Clarification

Support replies with:

“Your trades were closed in accordance with our overnight rollover procedures.”
“This is part of the platform’s automated execution settings.”
“Please refer to the terms regarding auto-close during low-liquidity rollover windows.”

These clauses are usually buried in vague legal language or not included in the public-facing T&Cs at all.

Step 4: Withdrawal or Bonus Targets Are Affected

The auto-close conveniently:

• Resets trade volume counters needed for withdrawals
• Reduces account equity, triggering margin calls
• Allows the broker to keep deposit bonuses that were about to be unlocked

This allows the broker to protect itself against client profit while pretending to follow market mechanics.

Red Flags to Watch For

No Advance Warning of Auto-Close Policy

If trades are closed without prior notice, and the broker never stated this behaviour in onboarding or T&Cs, it’s likely a scam.

Auto-Close Targets Only Profitable Positions

If only winning trades are closed while losing ones remain untouched, the broker is selectively manipulating rollover activity.

Rollover Explanation Changes With Each Complaint

If support gives a different reason each time (liquidity, spread, system glitch), they’re covering up bad intent.

No Similar Policy Among Regulated Brokers

If no other broker applies such auto-close rollovers, the practice is not standard—it’s exploitative.

Policy Is Hidden or Retroactively Added

Sometimes, brokers update their rollover terms only after the event—hoping you won’t notice.

How to Protect Yourself

Use Brokers With Transparent Rollover Policies

Top-tier brokers clearly explain:

• Swap charges
• Rollover hours
• Holding requirements for overnight positions

They never close trades automatically without your input.

Export Your Trade Logs Daily

Maintain personal records of all open and closed positions with timestamps. These logs help detect and challenge manipulation.

Avoid Bonus Programmes With Volume Clauses

Many scam rollovers are triggered just before a trader unlocks a withdrawal or bonus claim. Avoid bonuses that penalise rollover behaviour.

Run a Demo Account to Test Broker Rollover Behaviour

Before trading live, hold overnight positions on demo to see how the broker handles rollovers. Look for unusual closures or pricing shifts.

Challenge the Closure and Request Compensation

If a broker closes a trade without permission or clear policy, formally request trade log data and escalate to a regulator if necessary.

Conclusion

The Auto-Close on Rollovers scam is a sneaky yet devastating tactic where dishonest brokers abuse a legitimate market process to undermine trader profits and control account outcomes. By blaming the mechanics of rollover, they hide behind complexity while exploiting client positions.

To learn how to monitor rollover risks, verify broker execution policies, and protect your long-term trades from stealth closures, enrol in our Trading Courses tailored to execution rights, broker transparency, and risk-proofing your trades across all time zones.