What is Forex Swap?

It literally means to change or exchange. Its meaning in the stock market is actually similar to the word meaning. One of the issues that is not understood or ignored most frequently by exchange users is swap. However, it has a very important structure for stock market transactions. According to the transaction made by the exchange user, a value of + or – is assigned to his account. This value is the forex swap value. According to the swap system, if the stock market user puts the product with high interest on the market and buys the product with low interest himself, then a swap value is assigned to his account. Because the user has exchanged and exchanged the high-interest product in his hand with the low-interest product in the market for a certain period in order to obtain lower interest. For this reason, this transaction is called forex swap. If the user has applied the opposite process, that is, put the product with low interest on the market and bought the one with high interest himself, then the + value is assigned to the user’s account.

What are the Forex Swap Price Rules?

• Swap prices are not the same in every transaction. It differs from process to process.

• Forex Swap fees are transferred to the system at 00.00 every night.

• 3-day swap is applied to transactions made on Wednesday, while a single-day swap value is applied to transactions made on other days.

• Swap price may vary depending on the official holidays of the country where the transaction is made.

• The rate of liquidity providers is also included in the swap amount.

Is it possible to trade Forex without Swaps?

For those who want to make interest-free transactions or do not want to deal with swap rates, the forex system also offers swap-free transactions. There are many swap-free trading options in the Forex market. Those who want to trade without swap can choose from these options. If the investor wants to trade without swaps, he or she can get detailed information from forex experts or brokers.

SEE ALSO; What is GAP in Forex?

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