Rollover Rates (Swap)

For positions open at your broker’s “cut- off time” (23:59 sever time), there is a daily rollver interest rate that a trader either pays or earns, depending on your established margin and position in the market.

If you do not want to earn or pay intersest in your position, simply make sure they are all closed before 23:59 server time, the established end of the market day. Alternatively, you can (and should) select Islamic Account, when you Open your Real Account with us.

Islamic AccountSince every currency trade involves borrowing one currency to buy another, interest rollover changes are part of Forex Trading. Interest is paid on the currency that is borrowed, and earnd on the one that is bought.

If you are buying a currency with a higher Interest Rate than the one you are borrowing, then the net interest rate differential will be positive (i.e. USDJPY) and you will earn funds as a result.

Conversely, if the interest rate differential is negative, then you will have to pay funds.

In the currency trading terminal ‘swap’ is automatically converted into the balance currency. Operation is conducted at 23:59 Server Time. From Friday to Monday, Swap is charged once. From Wednesday to Thursday Swap is charged at triple rate.

How to calculate the Swap Rate

Swap occurs at a set cut off time every day,currently 00:00 server time. It is basically the interest rate which we calculated againtst the volume that you are trading whcih will be added or taken away from each trade that is not closed before that swap occurs. To avoid the swap on the positions, the traders need to be closed before the end of the market day. Swap is not a fee of anyform, it is the interest charged for borrowing currencies.

Each currency pair/simbol has a differenct swap rate, which you can find in the specificatiions tanle

Swap calculation is:

PIP value * Number of lots * Swap rate * Number of Nights

Example:

We will betrading EUR/GBP (0.82133). A buy position held for 3 nights with a USD base currency.

There are 2 ways to calculate swap manually.

The first determines the Pip value in the base currency of the account before the calculation, meaning the swap value is already in our base currency.

Therefore first determine thepip value for 1 lot EUR/GBP in USD base currency – which is 15.05 USD per Pip, so:

PIP value * Number of lots *  Swap rate * Number of Nights

15               *            1                  *   -0.14.        *          3                        = -6.32 USD

The second uses of PIP value of the pairs TEAM currency to determine theswap charge and then converts it to the base currency of the account after the swap calculation iscomplete:

PIP value * Number of lots *  Swap rate * Number of Nights

10              *            1                  *   -0.14.        *          3                        = -4.20 GBP

now you need to determine how much is -4.20 GBP in US dollars:

-4.20 GBP * 1.50614 (GBP/USD rate) = – 6.32 USD