Swap fee on forex

[claudevandam]

Hello all, It seem like a swap fee is charged when you keep a position open overnight. my question is how is that calculated? how can some know the fee of a position before even open it? thanks

 

[NVP]

the underlying charge is all to do with relative interest rates of the 2 currencies ....i dont hold O/N so leave it to the experts here ...N

 

[hatemypips]

Hello all, It seem like a swap fee is charged when you keep a position open overnight. my question is how is that calculated? how can some know the fee of a position before even open it? thanks

difference in interest rates+broker markup multiplied on your position. But you can find exact formula in the internet or use swap calculator like this https://www.hotforex.com/hf/en/forex-web-tools/swaps-calculator.html

 

[Pat494]

One or two brokers offer swap free !However read the small print and you will find that they can re-impose it at a moments notice if you are taking too much of an advantage. They may make it back in other ways though.

 

[LouisaM]

difference in interest rates+broker markup multiplied on your position. But you can find exact formula in the internet or use swap calculator like this https://www.hotforex.com/hf/en/forex-web-tools/swaps-calculator.html

Thank you for your comment, for me it is very useful

 

[galeonbaster]

Thank you for your comment, for me it is very useful

It should be mentioned that this calculator is only valid for hotforex.

 

[hatemypips]

It should be mentioned that this calculator is only valid for hotforex.

Nope it is general formula I remember it from my university studies. Basically the underlying principle of swaps is simple - receive interest on the currency you hold, pay interest on the currency you sell minus the costs from parties involved in organising trade (i..e broker)

 

[progix]

There is a new trend of swap free accounts which can be accessible to those who does not wish to pay swap and preferably the Muslims can avail them.

 

[NVP]

There is a new trend of swap free accounts which can be accessible to those who does not wish to pay swap and preferably the Muslims can avail them.

sorry - dont understand this comment ?

 

[progix]

I meant that many brokers have started offering swap free accounts now which are mostly available to Muslims or Muslim majority geographic locations.

 

[denys]

Brokers have started to offer swap free accounts to non-muslims as well. I saw one such case with turnkey forex.

 

[progix]

Yes it is happening and i guess now it is not limited to Muslims only.

 

[Henow1969]

Interest spreads are calculated at 4:59 pm New York time while the SmartTrader trading platform calculates at 11:59 pm calculated by the MetaTrader trading platform at the same time (GMT + 2). Therefore, interest spreads on transactions initiated by clients will be held before 4:59 pm New York time and will continue thereafter.

 

[trader-john]

Hello all, It seem like a swap fee is charged when you keep a position open overnight. my question is how is that calculated? how can some know the fee of a position before even open it? thanks

Swap rates are set by brokers and there can be large differences. You can check the actual rates by going to the contract specifications on your Meta Trader 4 or Meta Trader 5 terminal. Simple go to the market watch window, select an instrument and click on the right mouse button. Then select contract specifications.

As there can be large differences, swaps can be also used to make some decent coin. That's discussed here:

Swap arbitrage - is it possible?

Is it possible to open two position with 0 exposure from two different broker accounts, one of which has 0 swap charge and second offers positive swap? What are pitfalls of such strategy?

www.trade2win.com

John

 

[Henow1969]

If you are trading in a currency pair then swap is simply the interest rate between the two currencies of such pair. Swap is the interest which is sometimes paid to you and sometimes it is paid by you. This depends upon your position in the market. If your position in the forex market is for a long time then interest is given to you and if your position is for a short time then this interest is cut from your account.

 

[Kevin FD]

Interest spreads are calculated at 4:59 pm New York time while the SmartTrader trading platform calculates at 11:59 pm calculated by the MetaTrader trading platform at the same time (GMT + 2). Therefore, interest spreads on transactions initiated by clients will be held before 4:59 pm New York time and will continue thereafter.

its a good reply with nice information , thanks for your nice post.