Swap Rate

Forex Swap Rate (also known as Rollover Rate) is defined as the difference between the overnight interest rate of two currencies. The rate is used for payment or charging on an open position. The market conditions and the long-term/short-term nature of the trading also affect the forex swap rate.

Significant Characteristics of Forex Swap Rate

  • The swap rate is calculated at midnight on a daily basis.
  • The value of a swap rate may be positive or negative, and the rate is represented in points. The rate is also influenced by the interest rates of the two currencies involved.
  • Only open positions are considered for calculating swap rates at midnight. The only exception is Wednesday when the swap is charged three times the rate. It is aimed at balancing the effects of the weekend.
  • To view the latest swap rates, in your MT4 and MT5 client terminal, select the Market Watch panel.
  • Right-click the panel and select the ‘Symbols’ option. Select the desired Forex Pair and then click Properties.