WHAT IS A SWAP ?

WHAT ARE SWAP RATE ?

Swap rates represent the interest rate differences built into currency trades.
In simpler terms, every forex trade involves borrowing one currency to purchase another. For example, when you trade EUR/USD, you are effectively borrowing U.S. dollars to buy euros. This means you pay interest on the dollars you borrow while earning interest on the euros you acquire.

WHERE CAN I FIND YOUR SWAP RATES ?

Our swap rates are visible on all our platforms, by following these simple steps:

MT5

  • Click ‘View’ along the top menu
  • Select ‘Symbols’
  • Select which currency pair you want to see the swaps for, and click ‘Properties’
  • You can now see the long and short swap rates in the pop-up window

HOW DO YOU CALCULATE A SWAP RATE ?

Swap debits/credits are calculated as follows:
Current long/short rate * number of lots = swap debit/credit in second currency.

EXAMPLE 1

Your account currency is AUD and you hold one lot long on AUD/USD on 5 February 2015: +4.96 * 1 = $.4.96, converted to your account currency = A$6.35

EXAMPLE 2

Account currency is USD, you hold 2.5 lots short of EUR/GBP on 5 February 2015:
-1.08 * 2.5 = -£2.70, converted to USD = -$4.13

WHEN DO YOU CALCULATE YOUR SWAP RATES?

Our swap rates are calculated daily at 4:59 p.m. New York time / 11:59 p.m. MT5 platform time (GMT+2). Any trade opened before 4:59 p.m. and held beyond that time will incur swap charges.
Swap rates are tripled every Wednesday at 4:59 p.m. to account for the weekend rollover. Please note that while this is the standard swap schedule, it may be adjusted during weeks that include public holidays.