What is swap in forex trading? How is it calculated

What is swap in forex trading? How is it calculated

A swap is charged when a position is rolled over to the next day. In other words, it is a fee for holding your position overnight.

A swap fee depends on many factors just like the spread size. So, before opening a long-term position, we advise you to read about swap rates.

InstaForex strives to ensure favorable trading conditions for you and optimize the costs. That is why swaps are not charged for some categories of trading instruments.

offers zero swaps for two asset groups



Cryptocurrency pairs

However, certain conditions apply. If such conditions are fulfilled, the company does not charge any swaps for transactions with these types of assets regardless of the duration of an order.

A swap is charged for all sell trades unless there is an opposite buy trade on the same asset or a sold asset differs from the account currency. For example, the account is in USD, and the client opens a sell trade on #Ethereum, thus borrowing it from the company.

Now let’s go over the steps of how a swap is charged.

The algorithm looks like this:

First, you calculate free margin available on the account where a trade on a chosen asset (stocks or cryptocurrency) is open.card number
Then, current margin on non-locked buy positions is added to free margin.card number
Finally, you compare the amount you get in the previous step with the nominal value (without leverage) of non-locked buy positions. A swap is not charged on the part of the trade maintained by the client’s own funds.card number

Please note that swaps on stocks and cryptocurrencies are displayed in the account history in the form of a separate balance record. On the Standard account, they will come as Stocks rollover/Crypto rollover.

We hope that this description of how swaps are charged was helpful for you. This is a great opportunity to avoid swaps on such volite assets as cryptocurrencies and stocks. For this, you just need to meet a few simple requirements.

InstaForex is happy to offer you the most favorable trading conditions. Open a trading account with us in a few simple steps. After verifying and topping up your account, you will be able to take advantage of the described conditions for trading stocks, cryptocurrencies, and other financial instruments

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