What is a Swap Rate?
A swap is interest paid or received for holding a position over rollover/end of day. On a currency pair interest is paid on the currency sold and received on the currency bought. In addition, swap rates are driven by the interbank spread and cross currency basis.
Swap charges are released on a weekly basis by financial institutions that we work with.
Triple Swaps are charged on:
- Wednesday for FX and Metals
- Thursday for Cryptocurrency CFDs
- Friday for Index and Energies CFD cash products
Things you need to know:
- Swaps are charged when positions are kept open until the following Forex trading day
- Some currency pairs have negative swaps on both long and short
- Swap charges is measured on a standard size of 1.0 lot
- Metatrader 4 automatically converts swap rates into the base currency of your live account
To view the latest swap rates please refer to the table below.
What is a Financing Fee?
Financing fees are the cost you pay to hold a position on CFD trades.
It helps traders gain access to leveraged products while only having to pay an initial margin to open the position. As such, the financing fees reflects the cost of borrowing or lending the asset(s) which relate to your position(s). In addition, if dividends are paid out on the relevant index, then long positions will receive a positive adjustment, while short positions will receive a negative adjustment.
Please keep in mind that Friday is a triple fee day for CFDs.