Swap Rates
Forex Swap rate: what is it?
A forex swap rate or rollover is defined as the overnight interest added or deducted for holding a position open overnight. Swap rates are determined by the overnight interest rate differential between the two currencies involved in the pair and whether the position is long or short.
What You Should Know About Swap Rates
- Swaps are applied only when positions are kept open until the next forex trading day.
- Some currency pairs may have negative swap rates on both sides, both ‘long’ and ‘short’.
- Swap rates are calculated in points, MetaTrader 5 will convert them automatically into the base currency of your account.
- Each currency pair has its own swap charge and is measured on a standard size of 1.0 lots (100,000 base units).
- On Wednesday night swaps are charged at triple rate the usual rate.
Overnight Swap Rates
- 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.
Swap-Free Trading on MT5 platform
If you do not wish to receive or be charged swaps, then our GlobalMarketsGroup swap-free account is ideal for you. Swap-free trading is available on the MT5 platform, enabling you to trade without incurring any swap fees for positions kept open at the end of each trading day. It applies to forex (major and minor pairs) or precious metal trading symbols. However, please note that all other instruments are subject to swap fees.
Please note that if you already hold a Standard and/or Raw Trading account and you wish to convert it to a Swap-Free account, the existing account must be closed before a Swap-Free account can be opened. If you need to close an account, please ensure all open trade positions have been closed first.
For more details ask your GlobalMarketsGroup account representative or email us at info@gmgmarkets.co.uk to help you with the account opening process.
IMPORTANT: Once you have been approved for a Swap-Free account, you will be notified of the details of the swap-free nature and general conditions of the account. Please be aware that we reserve the right to monitor swap-free accounts to ensure it is being used in good faith and for the purposes intended, and that we will contact you directly if we suspect any irregularities.