What is a forex swap and why does it happen?
Forex swap is the overnight charge/credit amount for an open position.
The amount reflects the interest rate difference between the central banks (based on market rates and spreads) of the two assets involved.
Swaps are credited or debited once for each day of the week, with the exception of Wednesday, on which they are credited or debited 3 times their regular amount.
Swap charges are released on a weekly basis by the financial institutes which Fortrade works with, and are calculated and determined according to various risk management criteria and market conditions.