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One of the most frequently encountered terms when trading on the Forex market is swaps. Let's take a closer look at the swap, which is one of the words we see on the terminal screen, and how the swap is calculated.
Swap is the numerical value which calculated by taking into account the interest rates of the central banks of countries belonging to the pairs of foreign currency transactions.
1-The swaps are mirrored when we do not close the transaction today and wait the next day.
So if you open the transaction today and close it until 00:00 in the night, the swap is not calculated. If you open your transaction today and close it the next day, the swap is reflected.
Likewise, if you open your transaction today and move it for 1 week, it is reflected in the swap rate.
The swap cost is incurred only if the transaction is moved to the next day. Swaps are not reflected if the transaction is made on the same day as the closing day.
For example, you opened your transaction today at 15:00 pm. If you close your account at 23:00 pm on the same day, the swap will not be reflected. If you close your account at 01:00 am, the swap is reflected.
2-Swaps can be projected plus or minus.
As you know, in the forex market can perform bidirectional transactions. buying is done if the prices are considered to go up, selling is done if it is thought to go down. Whilst swaps are reflected, it is taken into account which direction you are trading.
For example;
If you do BUYING in USDTL, you will pay swap ((-) swap).
If you do Selling on USDTL, you will get a swap ((+) swap).
The reason for this is that the interest rates of the countries belonging to the currencies of the currency pairs differ.
You pay swap when you switch from a higher interest rate country currency to a lower interest rate country currency.
If you switch from a low interest rate country currency to a high interest rate country currency, you will win a swap.
As we mentioned in the example, when you make a BUY at the USDTL, you will get out of the Turkish lira which has a high interest rate and then you will have a low interest rate. In this case, you will have to pay a minus swap if there is a loss of swap.
On the other hand, if you sell USDTL, you will move from the low interest rate Dollar to the high interest rate Turkish lira, which means you will get a swap rate because you are going to high interest rate.
3-Swap payments are calculated for each day including the weekend.
The process you are doing is calculated taking into account the day you move the swab transaction. Days may be different, however.
Forex transactions are processed according to the rule of t + 2 on the day of receipt of takas.So if today is Monday, Takasbank is deemed to have taken place on the Wednesday by Takasbank. Only swap payments are made according to this rule.
Transactions between Monday, Tuesday, Thursday, and Friday, which should be known to the investor, are reflected in the 1 daily swap fee if moved to the next day. The transaction, which is opened on Wednesday, is reflected in the 3-daily swap fee if it is moved to the next day.
The reason for the 3-daily reflection is that it corresponds to the t + 2 rule that we just mentioned.
The day of the 3 day swap may vary depending on the day, institution and product. For this reason, you should get approval from the institution you work for the most healthy information.
On some platforms, the display showing the product properties is giving inform, about the swap paying day.
Because it differs from product to product, you can still see how much swap is reflected on your platform screen.
4-Swaps are calculated in the counter currency.
Swap is the numerical value which calculated by taking into account the interest rates of the central banks of countries belonging to the pairs of foreign currency transactions.
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Features;
1-The swaps are mirrored when we do not close the transaction today and wait the next day.
So if you open the transaction today and close it until 00:00 in the night, the swap is not calculated. If you open your transaction today and close it the next day, the swap is reflected.
Likewise, if you open your transaction today and move it for 1 week, it is reflected in the swap rate.
The swap cost is incurred only if the transaction is moved to the next day. Swaps are not reflected if the transaction is made on the same day as the closing day.
For example, you opened your transaction today at 15:00 pm. If you close your account at 23:00 pm on the same day, the swap will not be reflected. If you close your account at 01:00 am, the swap is reflected.
2-Swaps can be projected plus or minus.
As you know, in the forex market can perform bidirectional transactions. buying is done if the prices are considered to go up, selling is done if it is thought to go down. Whilst swaps are reflected, it is taken into account which direction you are trading.
For example;
If you do BUYING in USDTL, you will pay swap ((-) swap).
If you do Selling on USDTL, you will get a swap ((+) swap).
The reason for this is that the interest rates of the countries belonging to the currencies of the currency pairs differ.
You pay swap when you switch from a higher interest rate country currency to a lower interest rate country currency.
If you switch from a low interest rate country currency to a high interest rate country currency, you will win a swap.
As we mentioned in the example, when you make a BUY at the USDTL, you will get out of the Turkish lira which has a high interest rate and then you will have a low interest rate. In this case, you will have to pay a minus swap if there is a loss of swap.
On the other hand, if you sell USDTL, you will move from the low interest rate Dollar to the high interest rate Turkish lira, which means you will get a swap rate because you are going to high interest rate.
3-Swap payments are calculated for each day including the weekend.
The process you are doing is calculated taking into account the day you move the swab transaction. Days may be different, however.
Forex transactions are processed according to the rule of t + 2 on the day of receipt of takas.So if today is Monday, Takasbank is deemed to have taken place on the Wednesday by Takasbank. Only swap payments are made according to this rule.
Transactions between Monday, Tuesday, Thursday, and Friday, which should be known to the investor, are reflected in the 1 daily swap fee if moved to the next day. The transaction, which is opened on Wednesday, is reflected in the 3-daily swap fee if it is moved to the next day.
The reason for the 3-daily reflection is that it corresponds to the t + 2 rule that we just mentioned.
The day of the 3 day swap may vary depending on the day, institution and product. For this reason, you should get approval from the institution you work for the most healthy information.
On some platforms, the display showing the product properties is giving inform, about the swap paying day.
Because it differs from product to product, you can still see how much swap is reflected on your platform screen.
4-Swaps are calculated in the counter currency.
In Forex, profit and loss is calculated with counter currency. In Forex, swaps is calculated with counter currency too.
So; Assume that USDTL has a swap (-80) for BUY, and a swap (+50) for SALES.
The values mentioned here are in pips for 1 lot.
If you do BUYING for 1 lot in USDTL, it is worth 80 pips. You will pay 80 TL swap fee for 1 lot transaction. If your account is US dollar; The calculated 80TL swap is converted to USD and your account is reflected.
If you do the sales transaction, you will get 50 pips movement, so 50 TL swap. In the same way, if your account is dollar, your swap earn will be transferred to your usd account.
You can calculate the swap prices yourself according to the transaction volume. In the example, if you have traded 0,10 lots, you will pay 8 tl swap fee.
5-Forex has no swapped account.
It is called islamic account which has non-swap accounts are especially preferred by the conservative sector. Those who do not want to see swap + and - in the account can notify the institutions they are working with to ensure that the swap cost is not reflected.
If it differs from institution to institution, you can perform forex trading without pay any swap.Organizations that do not reflect the cost of transportation can supply it from you in different ways too.
For example, if you want to trade without swap fee, instution can increase the spread rates you paid to you. You may be asked to do a certain lot of transactions per month.
In some cases a maximum number of days can be specified for the transaction you are opening. It may be stated that if you do not close at the end of the period, the additional cost will be reflected by the institution.
Therefore; If you want a swap-free account, it is worthwhile to discuss all the conditions with the company in the most detailed way.
Click here to open an account and start forex trading immediately.
Institutions do not have to offer an account without a swap. Therefore, if you have such a preference, you will be able to investigate without opening the account opening process and open an account in the most appropriate institution.
So; Assume that USDTL has a swap (-80) for BUY, and a swap (+50) for SALES.
The values mentioned here are in pips for 1 lot.
If you do BUYING for 1 lot in USDTL, it is worth 80 pips. You will pay 80 TL swap fee for 1 lot transaction. If your account is US dollar; The calculated 80TL swap is converted to USD and your account is reflected.
If you do the sales transaction, you will get 50 pips movement, so 50 TL swap. In the same way, if your account is dollar, your swap earn will be transferred to your usd account.
You can calculate the swap prices yourself according to the transaction volume. In the example, if you have traded 0,10 lots, you will pay 8 tl swap fee.
5-Forex has no swapped account.
It is called islamic account which has non-swap accounts are especially preferred by the conservative sector. Those who do not want to see swap + and - in the account can notify the institutions they are working with to ensure that the swap cost is not reflected.
If it differs from institution to institution, you can perform forex trading without pay any swap.Organizations that do not reflect the cost of transportation can supply it from you in different ways too.
For example, if you want to trade without swap fee, instution can increase the spread rates you paid to you. You may be asked to do a certain lot of transactions per month.
In some cases a maximum number of days can be specified for the transaction you are opening. It may be stated that if you do not close at the end of the period, the additional cost will be reflected by the institution.
Therefore; If you want a swap-free account, it is worthwhile to discuss all the conditions with the company in the most detailed way.
Institutions do not have to offer an account without a swap. Therefore, if you have such a preference, you will be able to investigate without opening the account opening process and open an account in the most appropriate institution.
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