Understanding SWAPs
SWAPs, also known as overnight interest rates, represent the difference in interest rates between two currencies in a Forex trade. They are applied to positions held overnight.
Current SWAP Rates
- SWAP rates vary between currency pairs and are subject to market conditions.
- Contact your broker or access your trading platform to view the current SWAP rates applicable to your positions.
Factors Affecting SWAP Rates
- Interest Rate Differential: Changes in interest rates set by central banks influence SWAP rates.
- Market Volatility: SWAP rates can fluctuate based on market liquidity and volatility.
Using SWAP Rates in Trading
- Consider SWAP rates when holding positions overnight, as they affect the cost of maintaining trades.
- Factor SWAP rates into your trading strategy, particularly for longer-term positions.
Disclaimer
- SWAP rates are subject to change due to market conditions and liquidity provider policies.
