Swap Rate

A forex swap rate or rollover is defined as the overnight interest added or deducted for holding a position open overnight.

How are swaps formed?

When trading on margin, you receive interest on your long positions, while paying interest on short positions. The net interest difference is known as the carry and traders seeking to profit from this are known as carry traders

Where to check swap rate?

You will able to view the latest swap rates in your MetaTrader 4 trading terminal by following the process outlined below.
Right click on any instrument in the ‘Market Watch’ section, then left click on the ‘Specification’ option from the dropdown menu. A new window will open that shows the long and short swap rate for the pair selected.

Swaps' Facts

When you buy EUR/USD, it means you long EUR and short USD. When you short USD you don’t own it, you borrow and pay interest on this credit if you keep a position open overnight.

If the interest rate for the euro is 0.5% and the interest rate for the US dollar is 2%, after a 0.5% — 2% = -1.5%.
You will have to pay the amount of the swap during the rollover.
In other words, your position will earn the interest rate of the currency that you have bought, and you will owe the interest rate of the currency that you sold. The difference in interest rates is what is called a swap.

During the rollover from a day to another, a swap is calculated. Banks will normally add charges to swaps especially to volatile currency to secure themselves from suffering loss in the swap.
Swap is 3 times bigger than usual if you keep your position overnight from Wednesday to Thursday. It happens because of the impact of the 2-day settlement period of spot Forex.

e,g :A Forex trade from Monday settles on Wednesday. A trade from Tuesday settles on Thursday. As for a trade from Wednesday, it will be settled on the next Monday.

. If a position is kept open overnight from Wednesday to Thursday, the settlement will be moved forward to Monday, i.e. by 3 days, because there’s no trading during the weekend. As a result, the interest is charged for 3 days instead of just one.


MX Capital Financial Limited (LL14278) is registered and licensed by Labuan Financial Service Authority - Malaysia.


Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure Statement.
MX Capital Financial Limited: 14th Floor, Main Office Tower, Financial Park Labuan Complex, Jalan Merdeka, 87000 Labuan F.T., Malaysia

Phone: +6087599257

Email: customercare@mxcforex.com
layers linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram