FOREXPEDIA
EVERYTHING ABOUT FOREX
WHAT IS SWAP ?
The word "swap" means an act of exchanging one thing for another. At the financial markets swap is an agreement between two parties to exchange sequences of cash flows for a set period of time.
Swap is calculated depending on the currency rate position and based on low or high interest rates.
If a currency with a high interest rate is sold against a currency with a low interest rate an investor agrees to pay a commission for holding positions open overnight. This reflects as Swap on a trader’s account.
Example: If an investor sells TRY and buys USD, the swap will appear on a trading account as a negative balance.
Swap sometimes referred to as "overnight interest cost" or "cost of carry".
HOW TO BE A TRADER?
We invite you into the investment world of InvestAZ. You can follow the steps below to be an online investor with us.
Fill the demo account form to open an account and trade risk free positions.
You can apply to open a real account entering the world of investment.
After depositing the initial investment you can easily start to trade.
