What is a foreign exchange positions overnight overnight interest rates (or interest rate swaps)?
Swap rate is defined as the foreign exchange positions overnight overnight interest (win) or pay interest.
Each currency according to the interest rate on the day, and business direction overnight interest rates. In any currency pairs, the selling money pay interest, buying currency interest.
Swaps charge is released by the banking financial institution of our cooperation, according to their risk management analysis, and the market conditions of the day the two calculated on the basis of swaps.
Each has its own currency swaps interchange fees, the measure of the standard size is 1.0 hand (that is, 100000 units of volume).
Please note: due to the price after the transition of the weekend will be changed, so the week will have a day will collect or pay 3 times overnight interest, specific charge date is as follows:
Varieties of foreign exchange overnight interest every Wednesday will adjust for differences in interbank lending interest rates, and the three charge overnight interest rates three times a week;
Precious metals overnight interest rates will be according to the interbank lending interest is not time to adjust, and three charge overnight interest rates three times a week;
Energy products overnight interest rates will be according to the interbank lending interest timing adjustment, now change to every Friday charged overnight interest rates three times;
Stock products overnight interest rates will adjust for differences in interbank lending interest, every day is now changed to charge overnight interest rates three times every Friday.
Overnight interest is completely according to the interbank lending interest calculation.
The basic principle of platform of overnight interest calculations:
More warehouse + = customer to pay interest is interest rates
More warehouse + negative = customer interest
Shorts + = customer interest is interest rates
Shorts + negative = customer to pay interest
The swap rate below show rate is indicative, interest rates and subject to change according to the volatility of the market, not certain holding long positions must pay interest, holding short positions will charge interest.
Investors after open the MT4 trading platform,
Find you for what you have to query the interest rate products,
Like see the euro against the dollar (EURUSD),
Click to view the product information
Then you can see the SWAP rates on the market.