SwapsForex Swaps are defined as an agreed interest rate, usually set overnight (to be earned or paid) for keeping currency market positions open.
What is a Swap?
A swap charge is set based on interest rates applied in the countries of each currency involved and whether the position is long or short. In any one currency, the interest is paid on the currency sold and received on the currency bought.
Swaps costs are published weekly by the financial institutions we work with, and are calculated based on risk-management analysis and market fundamentals and conditions. Each currency pair has its own Swap charge and is rated by a standard lot of 1.0 (100,000 base units).
Keep in mind that interest rates are subject to fluctuation due to market volatility.
You can find details of the latest Swap data on 1000 Extra's MT4 platform. To see the interest rates, follow these steps:
- Go to the "Market Watch" window.
- Click right on that section and select "Symbols".
- Then select the currency pair you want to see, and click again on "Properties".