Forex Swap rate: what is it?
A forex swap rate or rollover is defined as the overnight interest added or deducted for holding a position open overnight. Swap rates are determined by the overnight interest rate differential between the two currencies involved in the pair and whether the position is long or short.
What You Should Know About Swap Rates
Swaps are applied only when positions are kept open until the next forex trading day.
Some currency pairs may have negative swap rates on both sides, both ‘long’ and ‘short’.
Swap rates are calculated in points, COF convert them automatically into the base currency of your account.
Each currency pair has its own swap charge and is measured on a standard size of 1.0 lots (100,000 base units)..
On Wednesday night swaps for FX, Metals, Bonds and Commodities are charged a triple rate the usual rate. On Friday night swaps for Energies, Indices and Cryptocurrencies are charged a triple rate the usual rate.