WHAT IS A SWAP RATE?
A forex swap rate is defined as an overnight or rollover interest that is earned or paid for holding positions overnight in foreign exchange trading. A swap charge is determined based on the interest rates of the countries involved in each currency pair and whether the position is short or long. In any one currency pair, the interest is paid on the currency sold and received on the currency bought.
HOW ARE SWAP RATES CALCULATED?
The swap charges are released daily by the financial institutions we work with and are calculated based on the risk-management analysis and market conditions. Each currency pair has its own swap charge and is measured on a standard size of 1.0 lot (100,000 base units).
The MT4 system calculates swap interest automatically at 23:59 GMT and the charge is debited or credited to and from the trading account accordingly. Swap rates are tripled on Wednesday at 23.59 GMT in order to compensate for the upcoming weekend as per the standard banking procedure.
Note: Currently, SKY FX PRO does not charge any swap, fee or interest on all type of accounts.