Risk Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.

Swap Rates

Competitive Swap rates

Competitive Swap rates

Transparent Swap Rates

Transparent Swap Rates

No hidden fees

No hidden fees

Following current interest rates

Following current interest rates

What Are Forex Swap Rates?

The swap charges in forex or rollover interest rates is the net interest return that a trader accumulates on a currency position held overnight. This fee is charged when the trader borrows one currency to buy another, as part of forex trading.

For instance, if you are buying EUR/USD, you might borrow in US Dollars and buy Euros with the amount. In doing so, you will need to pay interest on the borrowed US Dollars and earn interest on the Euros you bought.

The net interest fee is calculated based on the difference in interest rates of the two traded currencies. If the forex swap rate calculation is positive, the trader gains, while if it is negative, it is a cost for the trader.

Normally, deposit and credit rates on the same currency differ. The credit rate is usually higher than the deposit rate. That is why forex swap rates for long and short positions on the same currency pair are different.

How Does a Forex Swap Work?

When traders make a deal to buy or sell a currency, they commit themselves to making the final payments on the “value date.” The settlement is carried out within two working days of the transaction in the spot market. When the position remains open and is rolled over to the next day, it means that the value date shifts to a day ahead.

The corresponding volumes of currencies in the trade are borrowed and lent from the interbank market, at the current credit interest and deposit rates. So, the gains from lending and the cost of borrowing are transferred to the trader by their broker. Either the position gets re-opened automatically, at a new value date, adjusted to swap rate and a new price, or the swap is credited to or debited from the trader’s account, while the position is left with the previous price.

Calculation of Forex Swap Rates

To calculate the forex rollover rates:

· Subtract the interest rate of the base currency from the interest rate of the quote currency

· Then, divide that amount by 365 times the base exchange rate

Swap=(Contract X (Intherest Rate Differential + Markup)/100) X Price / Days per year

Let’s say that you are trading EUR/USD. Now, the interest rate of the European Central Bank (ECB) is 0.25% and that of the US Fed is 1.75%. Suppose you want to go long on the EUR/USD, which means that you will buy Euro and sell USD.

Now, the interest rate of the currency you are buying (EUR: 0.25%) is lower than the currency you are selling (USD: 1.75%). So, storage will be deducted from your trading account. However, the broker will charge a fee or mark-up for overnight swaps.

When your long position is rolled over to the next day, $5.30 will be deducted from your trading account.

How to Find AAA Trading Markets’Swap Rates in MT5?

How to Find AAA Trading Markets’Swap Rates in MT5?

To check the latest rates on MT5 accounts:

· Go to “Market Watch” section

· Right-click to select “Symbols”

·Choose the forex pair you want to trade

· Click on the “Properties” for the pair, (on MT5, please select 'Specification')

· All the information on the pair, such as forex swap rate, stop level, initial margin and more, will be displayed

mt5

Importance of Swap Charges in Forex

Swap calculations are done at the end of the day, for positions that remain open after 5:00pm ET. This is important for those who want to hold on to long term positions for a considerable period of time. Traders who use strategies focused not only on intraday price fluctuations but also on trend trading, on the basis of fundamental market changes, need to carefully think about swap rates.

In addition, forex swap charges are vital for traders using carry trade strategies. These strategies are entirely based on the interest rate differential between two currencies. The currency with a lower yield becomes the funding currency (borrowed currency) and the borrowed amount is used to buy a higher yield currency.

For instance, the Swiss franc (CHF) has a negative spread with almost every currency, which suggests that a trader who goes long on the ‘swissy’ can expect negative swap rates. On the other hand, if someone goes short on it, they can expect a positive swap when positions are held overnight. In contrast, going long on the GBP can result in positive swap rates against the euro, yen and swissy, while negative swap could be expected with the US, Canadian and Australian dollars.

Forex swaps are also important for hedging purposes. If a trader opens a position, expecting a certain type of market movement that hasn’t begun yet, they may consider opening another position in the opposite direction, without closing the first one. This is often called “lock mode hedging.” The low spread between the rates, which is ensured by interbank swap, can help minimise the cost of maintaining such positions.

Swaps Points

The following rates will be applied at 5pm EST 15/02/2023

Swap rates are subject to change.Live swap rates are available on the MT5 platforms.

Swap list

  • Symblol
  • Description
  • Long Swaps Value (points)*
  • Short Swap Value (Points)*
  • AUDUSD
  • Australian Dollar vs US Dollar
  • -4.095
  • 0.828
  • EURUSD
  • Euro vs US Dollar
  • -12.887
  • 6.737
  • GBPUSD
  • Great British Pound vs US Dollar
  • -10.119
  • 4.207
  • NZDUSD
  • New Zealand Dollar vs US Dollar
  • -3.74
  • 0.445
  • USDCAD
  • US Dollar vs Canadian Dollar
  • -2.333
  • -9.277
  • USDCHF
  • US Dollar vs Swiss Franc
  • 6.441
  • -12.686
  • USDJPY
  • US Dollar vs Japanese Yen
  • 7.361
  • -13.773
  • AUDCAD
  • Australian Dollar vs Canadian Dollar
  • -1.682
  • -3.453
  • AUDCHF
  • Australian Dollar vs Swiss Franc
  • 1.914
  • -7.23
  • AUDJPY
  • Australian Dollar vs Japanese Yen
  • 2.564
  • -7.316
  • AUDNZD
  • Australian Dollar vs New Zealand Dollar
  • -5.859
  • -4.902
  • CADCHF
  • Canadian Dollar vs Swiss Franc
  • 0.482
  • -8.294
  • CADJPY
  • Canadian Dollar vs Japanese Yen
  • 2.078
  • -7.223
  • CHFJPY
  • Swiss Franc vs Japanese Yen
  • -3.209
  • -2.991
  • EURAUD
  • Euro vs Australian Dollar
  • -13.3.6
  • 3.799
  • EURCAD
  • Euro vs Canadian Dollar
  • -12.133
  • 1.301
  • EURCHF
  • Euro vs Swiss Franc
  • -1.63
  • -4.6
  • EURGBP
  • Euro vs Great British Pound
  • -4.879
  • 0.889
  • EURJPY
  • Euro vs Japanese Yen
  • -1.045
  • -4.118
  • EURNZD
  • Euro vs New Zealand Dollar
  • -20.054
  • 0.062
  • GBPAUD
  • Great British Pound vs Australian Dollar
  • -8.378
  • -0.367
  • GBPCAD
  • Great British Pound vs Canadian Dollar
  • -6.273
  • -2.166
  • GBPCHF
  • Great British Pound vs Swiss Franc
  • -6.273
  • -2.166
  • GBPJPY
  • Great British Pound vs Japanese Yen
  • 2.277
  • -9.955
  • GBPNZD
  • Great British Pound vs New Zealand Dollar
  • -9.996
  • -5.036
  • NZDCAD
  • New Zealand Dollar vs Canadian Dollar
  • -4.137
  • -6.447
  • NZDCHF
  • New Zealand Dollar vs Swiss Franc
  • 0.685
  • -8.733
  • NZDJPY
  • New Zealand Dollar vs Japanese Yen
  • 0.661
  • -9.423
  • USDCNH
  • US Dollar vs Chinese Yuan in Hongkong Spot
  • -47.531
  • -111.331
  • USDHKD
  • US Dollar vs Hong Kong Dollar Spot
  • -47.531
  • -111.131
  • USDNOK
  • US Dollar vs Norwegian Krona Spot
  • -10.823
  • -90.013
  • USDPLN
  • US Dollar vs Polish Zloty Spot
  • -27.819
  • -50.039
  • USDSEK
  • US Dollar vs Swedish Krone Spot
  • -13.607
  • -182.897
  • USDSGD
  • US Dollar vs Singapore Dollar Spot
  • -13.145
  • -16.005
  • USDTRY
  • US Dollar vs Turkish Lira Spot
  • -500.764
  • 214.524
  • USDZAR
  • US Dollar vs South African Rand Spot
  • -297.66
  • 60.3
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