What are Swaps?
-
Swap rates are the fees collected by a broker on a certain trade or trading position in case it is kept open for the next day. If you want to keep your position open, you will be charged a specific interest on the currencies you are selling, and you may also collect interest on the currencies you are buying.
-
Swap interest rates are settled according to the interest rates in the countries in which currencies are traded. Besides, the trading and market movement, as well as the current market conditions play a great role in determining such rates.
-
It should be mentioned that each currency pair has its own swap rate, and the swap commission is calculated at 00:00 platform time.