SWAP Rates
What is SWAP?
Swap is a debit or credit paid or earned as a reflection of the varying interest
rates applicable to
currency pairs.
When trading the USD/JPY for example, swap interest rates will be determined based
on the interest rates of the countries being represented by this pair. Depending
on whether you are long or short and which country has higher interest rates, you
may be charged or credited interest. Essentially, when a trader holds a position
over night they are subject to the interest rates applicable to the currency pair
they are trading. 'Swap' is also commonly referred to as 'rollover rates'.
When are swap rates calculated?
Swap rates are calculated daily at 4:59 PM/ET. Trades that have been opened before
4:59 PM/ET and held open past this time will be subject to swap rates. Swap rates
are tripled on Wednesday at 4:59 PM/ET.
Why are swap rates tripled on Wednesday?
When placing a trade in the spot Forex market, the actual value date is two days
forward. A deal done on Thursday is for value Monday. A deal done on Friday is for
value Tuesday, and so on. On Wednesday the amount of swap is tripled in order to
compensate for the following weekend (during which time swap is not charged because
trading is stopped for the weekend).
Can I trade a 'no-swap' account?
Learn more about no-swap accounts
لمعرفة المزيد من التفاصيل عن هذه الحسابات إضغط هنا