Understanding Forex Swap

swap

Forex swap refers to the difference of interest that is valid in every country whose currency is being traded in the forex market. Traders will receive swap only if they leave their order open for more than one day. The swap amount is determined according to whether the position opened by the traders is a long or buy position or a short or sell position. For every pair being traded, traders have to pay the interest of the currency that they sell and to receive the interest of the currency that they buy. Continue reading “Understanding Forex Swap”