The "daily cut-off" refers to a designated time set by a financial institution, after which any trade orders received will be executed on the following trading day rather than the current one. This concept is particularly important in the forex market, which operates around the clock, but it can also be applicable to other markets.

The daily cut-off time holds significance for several reasons:

Settlement of Trades: It establishes the value date for the trade, which is the day the transaction will be finalized. For instance, in the spot forex market, if a trade is executed before the daily cut-off time, it is generally settled within two business days. Conversely, if the trade occurs after the daily cut-off, it will typically be settled within three business days.

Rolling Over Positions: In forex trading, any positions that remain open at the daily cut-off time are automatically "rolled over" to the next trading day. This process incurs a swap rate charge or credit, depending on the interest rate difference between the two currencies involved in the pair.

Calculating Interest: The daily cut-off time is also when overnight interest calculations occur in forex trading. Traders who maintain positions past the cut-off time may either receive or incur interest, based on the interest rate differential of the currency pair they are trading.

The exact daily cut-off time can differ among financial institutions, but it is usually set for late afternoon or early evening Coordinated Universal Time (UTC). It is crucial for traders to be aware of the daily cut-off time established by their broker, as it can influence their trading strategies and associated costs.