Our swap rates are based on institutional swap rates from highly reputable sources. They are the interest rates that govern how much large financial companies pay or earn when keeping overnight positions and are usually expressed as a percentage. We translate these rates into points, which are the values you see on your trading platform.
Forex and Spot Metals
Swaps on forex and spot metals are calculated using the tomorrow-next day rate, with a small added mark-up. We don’t determine these rates, as they are derived from the interest rate differential between the currencies in the pair you’re trading.
Swap rate = Trade Size x (+/- Tom-Next Rate - Mark-Up)
Whether the tom-next rate is positive or negative depends on the interest rate differential between the two currencies. The amount calculated is then translated into your account currency.
For example, let’s say you’re trading USDJPY, and the tom-next rates are as follows:
+0.5% for a long position
-1.5% for a short position
We can see the interest rates in the US are higher than those in Japan.
If you were to hold a long position open overnight, you’d earn 0.5% minus our mark-up. If you held a short position, you’d be charged 1.5% plus our mark-up.
If you have further inquiries, please don't hesitate to contact our Support Team via "Contact Us" function.