WSI Trading Instrument
Definition of Swap
clients trading two currency pairs, the interest rate on both currency pairs is taken into account, this is because each world currency has an independent interest rate. If the interest rate of the currency bought is higher than the rate of the currency bought, clients benefit positive rollover, and should the interest rate on the bought currency be lower than the sold, the client is charged the rollover.
Example About Swap
client buy GBP/USD, the Great British Pound is being bought and the US Dollar sold to balance the purchase. Should the interest rate of the GBP be set to 1.2% and the US Dollar is set to 0.20%, then you are buying a currency with a higher interest rate and therefore, you as a client will earn a 1% positive rollover. On the other hand, should the interest on the currency you are selling be 1% lower than the currency that you are selling; you will be eligible to pay the 1% difference. All Swaps are calculated on an annual basis.
Rollover Booking Times
The rollover process starts at the end of day at 23:59 server time. The Forex rates below are calculated based on USD accounts per 1 standard lot. The rollover/swaps are calculated and applied on every trading night
Most international banks do not operate during the weekend, the general rule of banks is to apply a set rate of interest during Saturdays and Sundays. To balance this, Swaps applied to forex accounts are usually tripled on Wednesdays. The Wednesday rate is taken and multiplied by three. Some instruments are subject to triple swap on Fridays. During public holidays, no Swaps are charged, however, Swaps can be charged on the two days prior to the scheduled holiday.