Swap rates can have a small or large effect on your overall trading strategy if not understood properly. Knowing when and how swaps are calculated is important for every trader to understand and account for in their trading strategies. Both long-term and short term traders should consider swaps as they execute their trades.

When are Forex Swap Rates calculated?

ThinkForex Swap rates are calculated each day at 4:59 pm Easter Standard Time (EST). Trades that have been opened before 4:59 pm (EST) and held open past this time will be subject to swap rates. Swap rates are tripled on Wednesday at 4:59 pm (EST).

 

How Swap Debits / credits Calculated?

Swap Debits / Credits are calculated as follows:

Current Long / Short Rate * pair currency price at the time swap is charged * lot size = swap debit/credit

AUD/JPY Standard Example:

+6.00 * 1.02874 (current price AUD/JPY) *1 (standard lot) = +6.17244, rounded down to +6.17.

Mini Account Swap debits / credits are 1/10 the size of the Standard Account Swap debits / credits.

*Swap rates above are based on $100,000 USD standard lot as base currency

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