What is the meaning of rollover cost?

Question

give examples as well.

Answer 1

A cost for changing one type of investment account to another, or for tranfering account from one investment firm to another.  Typical charge on 401Ks. Example:  You rollover (transfer the funds) from the 401K you held in your previous job to the 401K sponsored by your current employer.  Either can attach a rollover cost to you for the transfer.  Usually not a big amount.

Answer 2

This applies only to derivatives like futures and options contracts that expire in a given time. If the market hasn't moved in the expected direction in the given amount of time, you would roll out before expiration and re-initiate your position again in a similar contract with more time. The slippage and fees are the rollover cost.

definition of rollover

http://www.investopedia.com/terms/r/roll...

In the forex, it's a little different:

http://www.investopedia.com/ask/answers/...