The SWAP is in essence the cost of holding a position overnight. Due to the fact that our products involve – in most cases – two currencies and these two currencies have their own interest rate, when you place a trade you are also trading the difference in interest rates between the two currencies. This can work both for you and against you as it can add a significant cost to trading when holding longer term positions.
When you buy the EUR/USD pair, you are buying the Euro, and selling the U.S. dollar to pay for it. If the Euro interest rate is 1.00%, and the U.S. rate is 0.25%, you are buying the currency with the higher interest rate, and you will earn rollover -- about 0.75% on an annual basis. Conversely, you sell the EUR/USD pair, you are selling the currency with the higher interest rate, and you will pay rollover -- about 0.75% on an annual basis, since you are paying the euro interest rate and earning the U.S. interest rate
We will apply SWAPs on any positions opened prior to 2100hrs GMT and held over this time will be liable for a SWAP payment. Any positions opened and closed prior to 2100hrs GMT will not be held liable to pay or receive any SWAP.
A credit or debit for each position held open at 9 PM (GMT) will appear in your account and is applied directly to your account balance.
The SWAP rate applied is based around the interest rate of a specific country but can vary from broker to broker.
To view today's forex rates, simply click on the following link:
To view today's metals/oil rates, simply click on the following link:
To view today's indices rates, simply click on the following link:
Due to the weekend, the Forex market books three days of interest on the Wednesday. For some products this three day SWAP payment is booked on Firday (please refer to the individual products).
For key holidays the SWAP is usually calculated two days prior to the national holiday.