Swaps, also known as rollover fees, are applied when you hold a position overnight in the forex market. If you notice higher than expected charges in your account, several factors may contribute to this:
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Instrument Traded: Different trading instruments, such as forex pairs, metals, or commodities, have varying swap rates.
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Length of Holding Period: The duration for which you hold a position overnight affects the total swap charges. If you keep a position open for multiple days, the accumulated swaps can increase significantly.
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Triple Swaps on Wednesdays: A triple swap occurs when a trade is opened on Wednesday and held overnight in server time. This is due to the T+2 business day settlement period, which effectively settles on the Monday, and therefore, has to take into account the weekend as part of the swap charge.
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Position Size: The size of your position also impacts the swap fees. Larger positions will incur higher swap charges.
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