Swap will immediately catch the eye of researchers involved in financial investments is an issue and they look for answers to the question of what is the swap, especially what is the swap in Forex . Swap, meaning of the word as exchange, exchange has such meanings. Swap has a monetary value equal to a given time period is the exchange of two assets over cash flow. Swap interest in financial markets, commodity, swap income or expense is generated on the swap of money and stock derivative assets.

About Swap in Forex

Swap, in Forex, means the cost of transport by going beyond its traditional meaning. To swap in Forex, let's assume that the Dollar will be valued against the Dollar and assume that we have opened a USD / EUR parity position on our Euro asset in account. Thanks to this transaction, we buy Dollar on the parity of our Euro assets. In other words, we buy a certain amount of Euro as a loan through the long transaction that we have opened. If we do not close our purchase position on the same day, the swap name and deduction or income figures will be reflected to our account. Because Forex markets in the currency we sell for the interest we receive, in return for the currency we buy until we close the position we pay interest and the interest we receive is reflected in the difference in interest. If we close our position on the same day, there will be no swap for that position. In the example given, we take interest on the borrowed Euro and pay interest on the USD we borrow. Since the interest rate of the Euro is lower than USD, the swap price is negative in this opened position. If we sold a high-interest currency and a low-interest currency, in such a case, the swap value in our account would be positive. The net difference between these two interest rates is reflected in the position at . at night time of each working day.

Rules for Swap Price

First swap prices are calculated at midnight and processed into position. Day of the month For positions that are not closed, transport costs, ie swaps, may occur. Otherwise, swap is not reflected in daily transactions.

Second As a daily swap fee on Monday, Tuesday, Thursday and Friday nights Applied. Opened on Wednesday and closed at midnight 3 daily swap fee applies.

Third swap prices in the markets of the country where the transaction is made may vary according to the holiday calendar. For example in the UK Assuming it is a holiday that closes the markets with a sterling Swap in parity has the possibility to apply for more days.

Fourth swap fees are not the same in all foreign currency transactions. Interest rates promised in accordance with the interest rates applied by the central banks of the subject countries differs.

Fifth liquidity providers into the projected rate as swap format. commissions. From your brokerage learn the swaps about the financial instruments you wish to trade

Sixth The swap prices differ as for the swap long and swap short positions. Exhibit. So swap prices for buying and selling positions

Trading Swapless Forex

Option to open an account without having a swap in Forex There are forex market. Interest in this application known as Islamic forex name free forex accounts are designed free of earnings. This type of account swap price to ensure that the investors who do not want to endure can take place in the forex market. As a result, forex market users with or without swap account swap