Forex Swaps

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.

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)

Getting the latest swap rates

For the latest Swap rates please download the Smart Markets FX MT4 Trading Platform and follow the instructions below

  1. Login to MT4
  2. Click View
  3. Click Market Watch
  4. Right Click on Market Watch and select Symbols
  5. Choose the currency pair you wish to check and select Properties

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