What are Swap Rates?
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Swap Rates refer to the fees charged by the broker on a particular trade or position when it is kept open for an additional day. If you want to keep your position open, you must pay a certain interest on the foreign exchange or futures contract you sell, and you may also receive interest on the currency you buy.
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Swap rates are determined by the interest rates of the countries in which the currencies are traded, in addition to factors such as market movement, trading volume, and current market conditions playing a major role in determining these rates.