Forex Trading Basics
What is the swap rate?View
The swap rate, or forex rollover, is a type of interest charged on positions held overnight on the Forex market. The charge is applied to the nominal value of an open trading position overnight. Depending on the swap rate and the position taken on the trade, the swap value can be either negative or positive. In other words, you will either have to pay a fee or you will be paid a fee for holding your position overnight.
Positive Swap : If the interest rate on the currency you bought (base currency) is higher than the interest rate of the currency you sold (counter currency), you will earn interest.
Negative Swap : If the interest rate on the currency you bought (base currency) is lower than the interest rate of the currency you sold (counter currency), you will pay interest.
DEUSFX TECH automatically calculates your swap rates. Do take note that the swap rate can significantly affect your trade due to the additional cost and profit over a prolonged period.
How do my swap rates triple for positions held over roll-over on a Wednesday?View
If you hold open a position over Wednesday night, the amount added or subtracted to your account as a result of the swap rate charged is three times the usual amount. Triple swap rates are charged in the roll-over period on Wednesday night to account for the settlement of trades over the weekend where no swap rates are charged due to the market being closed. Please note this comes into effect regardless of whether your trade was open during the weekend.
How do orders execute over the weekend?View
If you place a buy stop or stop entry order at a price level that is filled at the open of the market on Sunday, the order will be filed at the next closest available price. Negative or positive slippages may be experienced depending on the degree of price change from Friday till Sunday.