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FOREX SWAP RATES

DIRECT ACCESS TO WORLD MARKETS

Forex – CFDs – Gold

 

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Forex Swap Rates

A forex swap rate is defined as an overnight or rollover interest (that is earned or paid) for holding positions overnight in foreign exchange trading.

A swap charge is determined based on the interest rates of the countries involved in each currency pair and whether the position is short or long. In any one currency pair, the interest is paid on the currency sold and received on the currency bought.

Swap charges are released daily by the financial institutions we work with and are calculated based on risk-management analysis and market conditions. Each currency pair has its own swap charge.

 

KEY THINGS TO CONSIDER ABOUT SWAP RATES:

  • Swaps are applied to your trading account only when positions kept are kept open until the next trading day.
  • Swaps are applied when the rollover occurs at the end of day, which is 00:00 server time.
  • Some currency pairs may have negative swap rates on both sides, both ‘long’ and ‘short’.
  • Each currency pair has its own swap charge and is measured on a standard size of 1.0 standard lots (100,000 base units).
  • On a Wednesday spot FX transactions (2 days settlement) are value date Friday, and the swap incurred will be calculated as three days (Fri-Sun)

For the latest Swap rates please download the MerchantFX MT4 Trading Platform and follow the instructions below:

 

1. LOG ON TO MT4

2. CLICK VIEW –  SYMBOLS

3. CHOOSE THE SYMBOL AND SELECT PROPERTIES 

4. VIEW THE SPECIFICATIONS 

Swap Rates Calculation

 

Swap rates determine the cost / payment for holding a position overnight. This occurs at 00:00 Server time, on any trades held to this point.

In order to calculate the payments / interest, you first need to take the swap long / short rate of the currency pair in question. In this example we will be opening a sell trade for 1 lot on EURAUD.

 

The swap short means for every rollover, you will receive 3.3 points (0.33 pips) per 1 lot. Therefore, the account will receive $3.30 AUD per rollover.

 

Start Live Trading in under 10 minutes instant download to and receive access to our exclusive Trade Tools

 

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